Trump says Iran war "close to over" amid hopes for more negotiations
Investing.com - UBS reiterated a Neutral rating on Nike Inc. (NYSE:NKE) with a $54.00 price target.
The firm noted Nike’s stock price has reached a 12-year low. Trading at $43.53, the stock is hovering just above its 52-week low of $42.09, with shares down 36% over the past six months. UBS said investor conversations indicate market participants are questioning whether earnings estimates and sentiment have declined enough to warrant purchasing the stock. InvestingPro data reveals that 19 analysts have revised their earnings downwards for the upcoming period, though the platform’s Fair Value analysis suggests the stock may be undervalued at current levels.
UBS does not believe the stock is ready for investment at current levels. The firm forecasts Nike fiscal year 2026 earnings per share of $1.47, which represents a 61% decline from the company’s fiscal year 2022 peak.
"We believe Nike still has much to prove and retain our Neutral rating," UBS stated. The firm added, "Our view is Nike needs to shrink its sportswear mix materially, do more to protect its ’superpower’ than it is currently doing, and lacks many easy drivers to return its EBIT margin to 10%." For deeper analysis, Nike is among the 1,400+ US equities covered by comprehensive Pro Research Reports, available on InvestingPro.
UBS said the consensus view among investors is that the stock is not yet a buy, and the firm agrees with that assessment.
In other recent news, Nike’s financial performance and strategic direction have drawn attention from several analyst firms. BofA Securities maintained a Neutral rating for Nike, noting a decline in its third-quarter fiscal 2026 gross margin to 40.2%, primarily due to regional pressures. RBC Capital lowered its price target to $70, citing prolonged recovery challenges in Greater China and other segments, but kept an Outperform rating. Piper Sandler downgraded Nike to Neutral from Overweight, expressing concerns over market saturation in its Sportswear line, and adjusted its price target to $50. HSBC also downgraded Nike to Hold from Buy, reducing its price target to $48, pointing to uncertainties in the company’s business recovery. Additionally, Nike announced the departure of its chief innovation officer, Tony Bignell, after less than a year in the role. This marks the third exit from the innovation chief position in under three years. These developments highlight the challenges and strategic shifts Nike is currently navigating.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.