BNP Paribas Exane cuts Nike stock price target on weak guidance
BNP Paribas Exane reduced its Nike (NKE) price target to $19 from $23, citing weak guidance and a multi-year Underperform rating. Nike's stock has fallen 51% over the past year. The company projected fiscal 2027 revenue to decline in the high single digits and adjusted EPS between $1.15 and $1.35. Several analysts have revised earnings estimates downward, though some suggest the stock may be undervalued.
How this was made
The 30-second read
Why it matters
The guidance miss and target reduction suggest near‑term downside risk for Nike and possibly the broader apparel sector.
Market read
Nike's weak outlook may trigger a sell‑off in consumer discretionary stocks and affect market sentiment toward retail earnings.
What to watch
Potential cost savings from the 'Pace' program and emerging brand growth could mitigate revenue decline.
Background
BNP Paribas Exane lowered its price target on Nike after the company released FY2027 guidance showing a revenue decline and lower EPS expectations.
Ticker impact
BNP Paribas Exane cut Nike's price target to $19 and reported FY2027 guidance forecasting revenue decline in the high single digits and EPS $1.15‑$1.35.
downward pressure as investors price in lower revenue and earnings expectations
The new guidance is materially below consensus and the target cut is steep, likely prompting sell‑offs.
Market effects
Consumer discretionary apparel sector may face broader valuation pressure.
US equity markets could see a dip in retail stocks.
Nike's guidance could influence global consumer‑goods sentiment.
Counterpoint
If Nike's restructuring accelerates, the long‑term upside may be undervalued by the target cut.
Key entities
- companyNike Inc.
Global athletic apparel and footwear manufacturer.
- analystBNP Paribas Exane
Equity research firm that issued the price‑target cut.
