RBC Capital analyst Piral Dadhania maintained Nike Inc (NYSE:NKE) with a Sector Perform and lowered the price target from $100 to $75.
Dadhania noted some complacency in assessing Nike’s equity story in recent months. A combination of the Fragmentation Hypothesis, turning the fashion cycle away from Nike’s core competency, and tougher comparatives than peers has created a perfect storm.
Dadhania had been cautious about Nike, noting that the product transition would be a multi-quarter process with guidance risk, confirmed by material earnings dilution post fiscal 2025 guidance.
Nike should emerge as a stronger company pursuing a more radical overhaul, which is necessary, as per the analyst. Nike has some heavy lifting to right-size key product franchises that are in decline and replace them with new styles, including refreshing entry-level ranges.
Nike requires better product visibility for the analyst to turn positive. The analyst also noted potential 2025 second-half earnings risk.
Dadhania expects fiscal 2025 revenue and adjusted EPS of $48.86 billion (prior $52.51 billion) and $2.99 (prior $3.88).
Deutsche Bank analyst Krisztina Katai maintained Nike with a Buy and lowered the price target from $115 to $92.
Nike Stock Prediction For 2024
Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.
Shares of Nike have an average 1-year price target of $99.33, representing an expected upside of 32.02%.
Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Nike, while 20 analysts have bullish ratings. The street high price target from Oppenheimer is $120.0, while the street low from RBC Capital is $75.0.
Price Action: NKE shares closed lower by 1.05% to $75.24 on Wednesday.
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