On Friday, Truist Securities adjusted its price target for Nike Inc (NYSE:NKE) shares, reducing it to $90.00 from the previous target of $97.00. Despite this change, the firm maintained its buy rating on the stock. Currently trading at $77.26, Nike appears undervalued according to InvestingPro analysis, though it faces headwinds with 12 analysts revising earnings downward for the upcoming period. The revision reflects Truist Securities' latest assessment of the sportswear giant's market position and strategy.
The analyst from Truist Securities expressed optimism about Nike's current strategic initiatives. The company's efforts to improve its wholesale positioning, enhance the Nike Direct business, and refocus its marketing on more impactful brand narratives were specifically highlighted as reasons for encouragement. With a market capitalization of $115 billion and a "GOOD" financial health score from InvestingPro, Nike maintains strong fundamentals despite current market challenges.
Nike's focus on its Direct business is part of its broader strategy to strengthen its connection with consumers. By enhancing its direct-to-consumer channels, Nike aims to deliver a more personalized shopping experience and increase its market share in the competitive sportswear sector. The company maintains healthy financials with a current ratio of 2.36 and operates with moderate debt levels, supporting its strategic initiatives.
In other recent news, Nike has been the subject of multiple analysts' attention. Williams Trading cut its stock target for Nike to $93 from the previous $97, while maintaining a Buy rating.
The firm anticipates sales and margin challenges for the remainder of fiscal year 2025, but expects an improvement in margins and brand positioning following FY25. The firm revised its earnings per share (EPS) estimates for Nike, reducing the FY25 EPS from $2.69 to $2.07 and the FY26 EPS from $3.34 to $3.08.
KeyBanc Capital Markets maintained a Sector Weight rating on Nike, acknowledging better-than-expected second-quarter results. Despite an 8% year-over-year revenue decline, Nike's performance surpassed the anticipated 10% drop. The firm noted Nike's ongoing restructuring challenges and decreased traffic at Nike Direct, but did not provide a specific forecast for return to full-price sell-through.
Needham reaffirmed its Buy rating and $84.00 price target for Nike, following the company's fiscal second quarter 2025 results. The firm's analyst highlighted the new CEO Elliott Hill's vision for Nike, including a candid evaluation of the company's recent struggles. The forecast for Nike's EPS has been adjusted to $2.00 for fiscal year 2025, $2.48 for fiscal year 2026, and $3.00 for fiscal year 2027.
BofA Securities revised its price target for Nike, lowering it to $90 from the previous $95, while reaffirming its Buy rating. The firm believes that a cleaner inventory will allow Nike to introduce new products more effectively. Meanwhile, Deutsche Bank (ETR:DBKGn) raised its price target for Nike to $84.00 from the previous $82.00, maintaining a Buy rating on the stock.
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