Analyst John Kernan of TD Cowen reiterated a Hold rating on Nike (NKE – Research Report), reducing the price target to $68.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
John Kernan’s rating is based on a combination of factors, primarily revolving around the current financial pressures and strategic shifts Nike is undergoing. The leadership change, with Elliot Hill as CEO, is seen as a positive move with a focus on product, marketing, and marketplace-led turnaround. However, the ongoing financial strain due to the marketplace reset is expected to persist into the fiscal year 2026, which raises concerns about the valuation direction and consensus earnings per share.
Despite the strategic advancements and efforts to improve culture and execution, the uncertainties regarding sales and margin estimates remain. The shift towards wholesale channels in North America and the potential margin-dilutive discounts are anticipated to be margin headwinds into fiscal year 2026. Although there are efforts to speed up product launches and focus on specific product categories, the financial progression timeline remains vague, prompting caution and justifying the Hold rating.
Kernan covers the Consumer Cyclical sector, focusing on stocks such as On Holding AG, Skechers USA, and TJX Companies. According to TipRanks, Kernan has an average return of 12.0% and a 59.35% success rate on recommended stocks.
In another report released yesterday, UBS also maintained a Hold rating on the stock with a $73.00 price target.