Berenberg downgraded Nike to Sell from Hold and slashed its target price by 44% to $27.50, implying 19% further downside, with analyst Nick Anderson's team saying the market structure has "shifted irreversibly against Nike." The call follows fiscal first-quarter results in which lingering weakness in Jordan, sportswear, and China overshadowed double-digit gains in performance categories including golf, tennis, running, and basketball. Berenberg said Nike's plan to organize sportswear around smaller focus areas reads as an admission that the company has accepted a smaller place in sportswear. The analysts flagged inventory management as another challenge, estimating the clean-up will drag on past 2027, and said Nike's exclusion of any gross margin guidance for FY27 signals significant risk from inventory uncertainty. Berenberg does not expect benefits from the latest restructuring plan until FY29 and cut its revenue and EPS estimates for the next three years. Nike shares, down 47% year to date, were under pressure into Tuesday's open.
Nike IncBerenberg downgraded Nike to Sell and cut its target price 44% to $27.50, citing an irreversibly adverse market structure and weak Q1 results.
