NKE Stock In Focus After Stifel Lowers Price Target To $40 – A Look At Some Key Highlights

Kylian Mbappé ended his 20-year partnership with Nike to join On Holding, aiming to expand into soccer. Nike shares fell, compounded by its removal from the S&P 100 index and China sales drop. On shares briefly rose before paring gains. Mbappé's move is symbolic for Nike's soccer business.

Nike (NKE) will be removed from the S&P 100 on Sept. 21, replaced by Palo Alto Networks (PANW). Nike's stock has fallen, reducing its impact on the Dow Jones Industrial Average, a price-weighted index. Nike's revenue was $46.4B in fiscal 2026, with net income declining 3% to $3.1B. CEO Elliott Hill is working on a turnaround amid weaker sales and competition.

Baird downgraded NIKE (NKE), Dick's (DKS), adidas, Rocky Brands, and VF Corp to Neutral, citing consumer spending concerns due to oil prices and interest rates. NIKE and DKS are interconnected, with NIKE products making up 31% of DKS's merchandise. DKS shares fell 30% in August after lowering full-year expectations. Hedge fund holdings in DKS increased, while NIKE saw a decline. Baird's report suggests potential structural demand weakness in the footwear segment.

Kylian Mbappé, a top footballer, has reportedly left Nike and signed with On, a Swiss sportswear brand. Mbappé's deal includes On shares, making him a part-owner. Nike's Q4 revenue declined 4% to $10.97 billion, and its share price has dropped about a third in six months. On, backed by Roger Federer, is expanding into football and other sports, with strong gross margins and retail growth.

UBS analyst Jay Sole lowered Nike's (NKE) price target by 13% to $42, citing expected earnings cuts and weak guidance. UBS forecasts Q1 EPS of $0.39, below consensus, and projects Q2 EPS guidance below estimates. The firm notes deteriorating demand trends in key markets and a 30% projected decline in Converse sales. Short interest in Nike shares reached a five-year high of 6.4% of equity float.

Nike (NKE) shares traded at $36.30, 80% below their 2021 high. Telsey Advisory cut its price target to $44, citing slow turnaround progress. Q4 revenue was $10.97B, down 1% YoY, with declines in direct and digital sales. CEO Hill noted ongoing challenges but progress in performance products. NKE stock is down 42% YTD.