Nike Stock Takes Hit as Goldman Sachs Lowers Price Target to $30

Nike Inc.'s stock price has been cut by Goldman Sachs to $30 from $38, as the company's weak guidance for fiscal 2027 weighed on investor sentiment. The move comes as Nike's fiscal first-quarter results revealed a modest revenue miss, but exceeded earnings per share expectations due to improved margins.

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's guidance for fiscal 2027 called for a significant decline in revenue, expecting a decrease in the high single digits compared to Wall Street's estimate of a 2.4% drop.

Several analyst firms have responded to Nike's outlook by adjusting their price targets. Stifel lowered its target to $36 from $40, while BTIG reduced its target to $50 from $55, and BofA Securities cut its target to $24 from $30. Jefferies adjusted its target to $60 from $75.

Nike's next catalyst is the company's 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.