As a result of these considerations, Stifel has significantly reduced its estimates for Nike (NYSE:), but continues to hold a neutral stance on the stock, awaiting better visibility on the company’s stabilization efforts before adopting a more positive outlook. The new price target of $75 is based on a 26 times price-to-earnings (P/E) ratio on Stifel’s estimated EPS of $2.88 for the fiscal year 2027 (FY27).
For deeper insights into Nike’s valuation and future prospects, including exclusive analyst coverage and comprehensive financial health scores, investors can access the full Pro Research Report available on InvestingPro. For deeper insights into Nike’s valuation and future prospects, including exclusive analyst coverage and comprehensive financial health scores, investors can access the full Pro Research Report available on InvestingPro.
Nike introduced its new CEO, Elliott Hill, who rejoined the company in October and has taken on the challenge of steering the brand’s turnaround. Hill has outlined a vision for Nike that re-emphasizes its roots in sports and athleticism, aiming to reestablish the brand as a premium entity driven by athletes.
As a result of these considerations, Stifel has significantly reduced its estimates for Nike, but continues to hold a neutral stance on the stock, awaiting better visibility on the company’s stabilization efforts before adopting a more positive outlook.
The new price target of $75 is based on a 26 times price-to-earnings (P/E) ratio on Stifel’s estimated EPS of $2.88 for the fiscal year 2027 (FY27). For deeper insights into Nike’s valuation and future prospects, including exclusive analyst coverage and comprehensive financial health scores, investors can access the full Pro Research Report available on InvestingPro. Gross margins are also anticipated to fall by 300 to 350 basis points, a more severe drop than the previously estimated 60 basis points.
The analyst noted that Nike will continue to undertake significant marketplace clean-up measures extending into the fiscal year 2026 (FY26), and the brand’s turnaround is expected to span multiple quarters. Despite the near-term pressures, Stifel believes that Nike’s strong brand heritage and organizational competence provide a foundation for eventual improvement and offer a valuation backstop.
As a result of these considerations, Stifel has significantly reduced its estimates for Nike, but continues to hold a neutral stance on the stock, awaiting better visibility on the company’s stabilization efforts before adopting a more positive outlook. The new price target of $75 is based on a 26 times price-to-earnings (P/E) ratio on Stifel’s estimated EPS of $2.88 for the fiscal year 2027 (FY27).
In other recent news, Nike’s fiscal second-quarter results met expectations, with an 8% decline in sales, as reported by TD Cowen. The firm maintained a Hold rating on Nike’s shares, despite adjusting the price target from $73.00 to $69.00. Truist Securities, Williams Trading, and BofA Securities also revised their price targets for Nike to $90, $93, and $90, respectively, all while maintaining Buy ratings.
Recent developments suggest a cautious outlook from analysts due to challenges in the competitive apparel and footwear market. TD Cowen raised concerns about future earnings, suggesting potential reductions for Nike’s FY26 earnings per share (EPS). Williams Trading and Needham also revised their EPS estimates, indicating a potential slowdown in revenue growth.
Despite these challenges, Nike’s strategic actions are being expedited under the leadership of new CEO Elliott Hill. The company is focusing on improving its competitive stance and refocusing on sports beyond basketball. Additionally, Nike’s efforts to strengthen its direct-to-consumer channels are aimed at delivering a more personalized shopping experience and increasing its market share.
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