Truist cuts Nike stock price target on China weakness, sales outlook
Truist Securities cut Nike's (NKE) price target to $29 from $42, citing weak guidance and China business decline. Nike shares fell 9% post-earnings, trading near 52-week lows. The company expects high single-digit sales declines and EBIT pressure. Multiple analysts lowered price targets, citing weak outlook and China challenges. Nike's revenue missed estimates, but EPS beat expectations.
How this was made
The 30-second read
Why it matters
The guidance downgrade and price‑target cut are fresh, material information that can drive near‑term price action.
Market read
Nike's stock fell 9% on the guidance miss; the new target of $29 signals a bearish outlook for the sector.
What to watch
Potential cost‑saving initiatives and new product launches may mitigate the sales decline over the longer term.
Background
Nike reported fiscal Q1 2027 results with a modest revenue miss but beat EPS expectations; however, its forward guidance fell short of Wall Street forecasts.
Ticker impact
Truist cut Nike's price target to $29 from $42 after the company issued fiscal 2027 guidance showing high‑single‑digit sales declines and EBIT pressure, especially in China.
likely further downside as the market prices in the weaker guidance and target cut
New fiscal 2027 guidance and price‑target cut are primary disclosures; the stock already fell 9% on the news, indicating immediate pressure.
Market effects
Weakness in Nike may pressure other apparel and consumer discretionary stocks, especially those with exposure to China.
China‑focused retailers could see heightened scrutiny as Nike's China sales slump 26% in Q1.
Nike's size means its guidance miss can influence broader market sentiment on consumer spending.
Counterpoint
If Nike's digital reset gains traction, the stock could rebound despite short‑term weakness.
Key entities
- companyNike Inc.
Global athletic apparel and footwear maker (ticker NKE).
- analystTruist Securities
Research firm that lowered Nike's price target.
