Goldman Sachs Cuts Nike Price Target Amid Bleak Guidance

Nike Inc.'s stock took another hit as Goldman Sachs lowered its price target on the athletic apparel giant to $30 from $38, citing weak guidance. The move follows Nike's fiscal first-quarter results, which revealed a modest revenue miss but exceeded earnings per share expectations due to improved margins.

Nike projected a significant decline in fiscal 2027 revenue, expecting a decrease in the high single digits compared to Wall Street's estimate of a 2.4% drop. The company also guided for earnings per share between $1.10 and $1.35, below the Street's estimate of $1.56.

Goldman Sachs is not alone in its pessimism, with several analyst firms adjusting their price targets downward after Nike's outlook. Stifel lowered its target to $36 from $40, citing the company's bleak revenue projections and a 21% year-over-year decline in adjusted EPS. BTIG also reduced its price target to $50 from $55, maintaining a Buy rating.

Nike's performance business grew in the double digits, but this was offset by significant pressure in its Sportswear, Jordan, and China businesses, which declined in the low double digits, mid-teens, and 26% excluding foreign exchange, respectively. The company attributed these declines to ongoing challenges in these areas.