Wells Fargo cuts Nike stock price target to $30 on revenue headwinds
Wells Fargo reduced its price target for Nike (NKE) to $30 from $40, citing revenue headwinds and weak guidance. The stock has fallen 51% over the past year. The firm expects high-single-digit revenue decline and earnings per share of $1.15-$1.35 for the current year, below street estimates. Nike faces challenges in China and with its Jordan and Sportswear brands, which represent significant portions of its sales.
How this was made
The 30-second read
Why it matters
The downgrade lowers expectations for near‑term earnings, likely pressuring the stock.
Market read
Nike's large market cap and recent price drop make this analyst action a notable market mover.
What to watch
Nike's upcoming product launches and brand strength may mitigate the short‑term downside.
Background
Analyst price‑target revisions following Nike's revenue miss and weak guidance.
Ticker impact
Wells Fargo lowered Nike's price target to $30, citing revenue headwinds and weaker guidance.
downward pressure as the market prices in the reduced target
Analyst downgrade with a concrete new target often leads to immediate price declines.
Market effects
Athletic apparel sector may see broader weakness as Nike's guidance drags peers.
U.S. consumer discretionary sentiment could soften in the near term.
International retailers with exposure to Nike may experience spillover effects.
Counterpoint
If the market overreacts, Nike could rebound on its cost‑saving initiatives later in the cycle.
Key entities
- analystWells Fargo
Equity research firm that cut Nike's price target.
