Goldman Sachs Slashes Nike Stock Target Amid Weak Guidance

Nike Inc.'s () stock price target has been cut by Goldman Sachs to $30 from $38, while maintaining a Neutral rating. The current share price of $35.15 is close to its 52-week low of $35.02 and has declined 51% over the past year. The firm cited Nike's weak fiscal 2027 guidance, which fell short of FactSet expectations, along with first-quarter results.

The company's performance business grew in 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. Nike expects significant actions to return the business to a healthy marketplace will meaningfully impact fiscal 2027 and continue into fiscal 2028, with margins expected to come under pressure due to deleverage.

Nike's next catalyst is its Investor Day on November 17, where investors will look for a better understanding of the company's plans for each of its pressured businesses and management's five-year growth algorithm. Several analyst firms have responded to Nike's outlook by adjusting their price targets, with Stifel lowering its target to $36 from $40, citing the company's bleak revenue projections and a 21% year-over-year decline in adjusted EPS.