JPMorgan Slashes Nike Stock to Underweight with $40 Price Target

JPMorgan downgraded Nike's stock to Underweight with a $40 price target, sending shares down 3.11% in pre-market trading.

The move is based on JPMorgan's earnings math, which shows that Nike's turnaround decisions will pressure earnings through fiscal 2028, rather than being a quick fix story.

Nike's revenue is expected to take a hit from the China online reset in January 2027, with over $1 billion in annual revenue lost, making up about 20% of the region's revenue.

The Street disagrees with JPMorgan's bearish call, with 12 Buy ratings still on the board against just 2 Sells, and many analysts predicting a recovery for Nike.

However, JPMorgan's numbers are sobering, with FY27 EPS expected to be $1.55, around 10% below Street consensus, and FY28 EPS expected to be $1.72, about 20% below consensus.