KeyBanc downgraded Nike to Sector Weight from Overweight on Friday without issuing a price target, citing a slower-than-expected turnaround and growing uncertainty in China, Europe, the Middle East, and Africa. Analyst Ashley Owens said the outlook is "further clouded" by continued marketplace challenges and management transition. Nike shares are on track for their sharpest weekly decline in nearly three months, following a drop to nearly 12-year lows on Thursday.
KeyBanc Cuts Nike Rating to Sector Weight, Lowers Fiscal 2027 Estimates
KeyBanc downgraded Nike to Sector Weight from Overweight on Friday and did not add a price target, according to The Fly. Analyst Ashley Owens said the company's turnaround is taking longer than expected, with the outlook "further clouded" by growing uncertainty in China, Europe, the Middle East, and Africa, along with continued marketplace challenges and management transition. "There are signs of progress, but not enough for us to remain optimistic," Owens said. KeyBanc also lowered its fiscal 2027 estimates slightly and said it will wait for a more detailed strategic update.
Nike Names David M. Denton CFO, Reaffirms Q4 Outlook Amid China Policy Shift
On Tuesday, Nike named former Pfizer executive David M. Denton as its new CFO. Alongside the leadership change, the sportswear giant reaffirmed its fourth-quarter outlook ahead of results due June 30. While the quarter will benefit from one-time tariff refunds, Nike said its underlying performance is still expected to be broadly in line with the guidance it previously issued.
Earlier this week, Chinese news agency Sina reported that Nike plans to stop key distributors in China from selling its products online starting Jan. 1, 2027, directing customers instead to Nike's official online store. This led BNP Paribas analyst Laurent Vasilescu to describe the reported move as a "strategic misstep."
Oppenheimer Reduces Nike Price Target to $60, Maintains Outperform Rating
Oppenheimer halved Nike's price target to $60 from $120 and kept an Outperform rating. This represents a roughly 47% upside potential from the stock's closing price on Thursday. Oppenheimer added that the sportswear brand is expected to report Q4 results largely in line "but still soft."
Nike Q4 Earnings Expected June 30 With $10.85 Billion Revenue Forecast
Nike is expected to post a revenue of $10.85 billion and earnings of $0.12 per share in the fourth quarter, according to Fiscal.ai data. Results are due June 30. NKE shares have slumped more than 35% so far this year.
FAQ
What did KeyBanc do with its Nike rating on Friday?
KeyBanc downgraded Nike to Sector Weight from Overweight on Friday without issuing a price target. Analyst Ashley Owens cited a slower-than-expected turnaround and growing uncertainty in China, Europe, the Middle East, and Africa.
Who did Nike name as its new CFO on Tuesday?
On Tuesday, Nike named former Pfizer executive David M. Denton as its new CFO. The company also reaffirmed its fourth-quarter outlook ahead of results due June 30.
What is Nike's reported plan for China distributors starting Jan. 1, 2027?
Chinese news agency Sina reported that Nike plans to stop key distributors in China from selling its products online starting Jan. 1, 2027, directing customers instead to Nike's official online store. BNP Paribas analyst Laurent Vasilescu described the reported move as a "strategic misstep."
