Nike Inc Stock Forecast:
According to 32 analysts, the average target price for Nike Inc stock over the next 12 months is USD 135.11. The analysts’ average rating for Nike Inc is Strong Buy. However, Stock Target Advisor‘s analysis of Nike Inc suggests a Neutral stance, based on 8 positive signals and 7 negative signals. As of the last closing, Nike Inc’s stock price was USD 113.37. Over the past week, the stock price has increased by +2.63%, over the past month by +5.45%, and over the last year by +9.80%.
Analyst Coverage Changes:
- UBS (RANK#16) raises the target for Nike Inc. to $150 from $145.
- RBC (RANK #3) lowers the target for Nike Inc. to $134 from $138.
- Bank of America Merrill Lynch (RANK #20) lowers the target for Nike Inc. to$125 from $135.
Nike Inc. News:
Nike Inc. disappointed investors and analysts as it forecasted first-quarter revenue below Wall Street expectations. The company cited cost-conscious consumers in North America reducing their spending on sneakers and sports apparel, overshadowing a strong recovery in China. While sales in China showed resilience, the slowdown in North America has raised concerns about the company’s performance in its largest market.
In the fourth quarter, Nike’s sales in North America rose by a modest 5%, marking the slowest growth rate in four consecutive quarters. The deceleration can be attributed to cautious behavior from U.S. wholesalers, who scaled back on placing newer orders. The prevailing economic climate has compelled consumers to exercise prudence in their purchasing decisions, thereby impacting Nike’s revenue growth.
During an earnings call, CEO John Donahoe acknowledged the challenging environment and indicated that the upcoming year would remain promotional, putting pressure on wholesale partners to navigate the first half of the year effectively. This suggests that Nike expects continued headwinds and intensified competition in the market, potentially necessitating strategic adjustments and promotional offers to capture consumer interest.
The company’s cautious outlook contrasts with analysts’ expectations, as Nike anticipates flat to low-single-digit growth in first-quarter reported revenue, while analysts had predicted a 5.8% increase, according to IBES data from Refinitiv. This discrepancy reflects the uncertainty surrounding consumer behavior and the potential impact on Nike’s financial performance.
