Nike Shares Plummet After BTIG Downgrades Price Target

Nike's (NYSE:NKE) share price dropped significantly after BTIG Research downgraded its price target to $50.00 from $55.00, citing concerns about the company's growth prospects. The stock had previously closed at $35.15 but opened at $32.55 on Friday.

This is not the first time Nike has received a downgrade. In June, Robert W. Baird dropped its price target to $36.00 from $44.00 and assigned a 'neutral' rating for the company. Despite these concerns, BTIG Research still maintains a 'buy' rating on the stock.

Nike's quarterly earnings report showed that revenue fell 4.3% year over year to $11.21 billion, missing the consensus estimate of $11.32 billion. The company also forecasted fiscal 2027 adjusted EPS of only $1.15 to $1.35, which is well below the roughly $1.66 analyst expectation.

Management plans additional job cuts after two rounds of reductions earlier this year, reinforcing concerns about the depth of the slowdown in the sportswear industry.