Morgan Stanley Slams Nike Stock: 'Underweight' Rating and $31 Target

Nike's stock has been struggling lately, losing more than 40% of its value since the start of the year. The latest blow came on Thursday when Morgan Stanley analysts reinstated coverage with an 'underweight' rating and a Street-low target price of $31.

The analysts believe that the consensus forecast for Nike 'embeds too much growth too soon, particularly in China,' citing macroeconomic headwinds and competition concerns. They also noted that the company's current valuation is out of touch with an 'increasingly fragmented' sportswear landscape.

Nike's management, led by CEO Elliott Hill since 2024, may have a chance to 'reset expectations' about the pace of its turnaround during the upcoming earnings report in October or annual investor day in November. However, only one of the other 13 analysts tracked by Visible Alpha has recommended selling shares, with 10 neutral and two 'buy' ratings.