Evercore ISI lowered its price target on Nike (NYSE: NKE) to $69 from $77, while maintaining an Outperform rating, citing softer earnings expectations.
The firm reduced its fiscal 2027 EPS estimate to $2.00 from $2.30, but maintained a positive stance on the stock as sentiment remains near recent lows.
Nike shares have declined 18% year-to-date, underperforming the broader discretionary sector, which is down 10%. Evercore attributed the weakness to concerns around slowing growth in China, limited innovation driving global point-of-sale acceleration, and moderating gross margin expansion into the second half of the fiscal year.
The firm expects North America to show continued signs of stabilization, while Europe is likely to reflect similar trends to those highlighted in Nike’s December commentary, including elevated promotional activity.
Despite these challenges, Evercore pointed to Nike’s upcoming World Cup-related initiatives as a potential catalyst that could support investor confidence and improve sentiment in the near term.
