RBC Capital maintains Nike stock rating on deeper cuts ahead
RBC Capital maintained its Sector Perform rating and $40 price target for Nike (NKE), citing deeper operational challenges and reduced earnings estimates. Nike's stock fell 9% after a revenue miss and weak guidance for fiscal 2027, with revenue expected to decline in the high single digits. Multiple analysts lowered their price targets, citing sales declines and slow turnaround progress. The stock trades at $35.15, near its 52-week low.
How this was made
The 30-second read
Why it matters
The guidance miss and EPS cuts are likely to keep the stock under pressure in the near term, with sector peers watching for similar trends.
Market read
Nike's guidance shortfall is a material catalyst for the consumer discretionary space and may influence broader market sentiment.
What to watch
Potential upside from a new CFO and upcoming capital markets day could improve guidance later in the year.
Background
RBC Capital reiterated its rating on Nike after the company posted FY2027 guidance showing a high‑single‑digit revenue decline and EPS guidance below Street expectations.
Ticker impact
RBC Capital cut Nike's EPS estimates by up to 20% and reiterated a Sector Perform rating after the company reported a revenue miss and weak FY2027 guidance.
likely pressure as the market prices in the earnings guidance cut and reduced EPS forecasts
The guidance miss and EPS estimate cuts are fresh, material for a large‑cap consumer discretionary stock and have already moved the share down 9%.
Market effects
Consumer discretionary sector may see broader weakness as Nike's outlook drags sentiment.
U.S. equity markets could open lower on the news, especially apparel and footwear stocks.
International peers with exposure to China and Jordan lines may experience spillover pressure.
Counterpoint
If Nike's cost‑saving "Pace" program delivers faster than expected, the stock could rebound on the downside.
Key entities
- companyNike Inc.
Global athletic apparel and footwear maker.
- analystRBC Capital
Equity research firm providing the rating and price target.
