Nike downgraded to Neutral from Buy at Citi

Citi downgraded Nike (NKE) to Neutral from Buy with a price target of $72, down from $102, after attending a sell-side event to meet with the company’s new CEO Elliott Hill. After discussing the key building blocks and challenges to achieve a turnaround, Citi no longer believes fiscal 2026 will inflect the way it hoped, either on the sales or EBIT margin line. Nike’s sales pressures seem likely to continue as it manages down key franchises further in fiscal 2026, without enough new product at scale to “fill the void,” the analyst tells investors in a research note. The firm says management spoke of ongoing gross margin headwinds tied to continued efforts to clean up the marketplace, and the need for investment in demand creation. Citi now believes fiscal 2026 consensus estimates are too high, making Nike’s turnaround timing “much less visible.” The firm no longer has “the patience or conviction to wait another year.”