Nike Stock Sees 21% Upside Potential Amid Q1 Earnings Weakness

Nike (NKE) is set to announce its fiscal first-quarter earnings on October 1, after shares have fallen more than 41% year-to-date amid continued sales weakness and intense competition.

Most Wall Street analysts have Hold ratings on NKE stock, reflecting a cautious stance amid concerns that the company's turnaround will likely take longer. Wall Street's average price target indicates 21.2% upside potential.

The Street's consensus estimates reflect a decline in fiscal first-quarter earnings and revenue. Analysts expect Nike's Q1 FY27 earnings per share (EPS) to fall 10.2% year-over-year to $0.44, while revenue is expected to fall 3.3% to $11.33 billion.

Piper Sandler analyst Anna Andreeva lowered her price target on Nike stock to $38 from $45 and reiterated a Hold rating. She expects North America wholesale business to benefit from World Cup-related demand but lowered her gross margin estimate by 40 basis points and EPS estimate to $0.37, citing a more promotional environment as the quarter progressed.

Oppenheimer analyst Brian Nagel reiterated a Buy rating on Nike stock with a price target of $52, despite cautioning that the near-term sector and macro backdrop is worsening. He noted recent commentary from Dick's Sporting Goods (DKS) indicating softer demand and rising marketplace inventories in legacy, more lifestyle-focused footwear.