Adidas accelerates and widens its lead over Nike

Barclays raised its price target for Nike (NKE) to $45 from $37, citing stable shares and a potential bottom. Nike's dividend yield is 4.49% with a 72% payout ratio. The stock is trading at a 45.1% discount to its intrinsic value of $68.34. Insiders and gurus show mixed but overall positive sentiment.

Barclays raised its price target for Nike to $45 from $37. The company's stock was trading at $37.53, down 0.92%. JP Morgan also assigned a Sell rating to Nike, according to the report.

Nike hosted its After Dark Tour 10K for 5,000 women in London, aiming to empower female runners. The event follows Nike's revenue decline and restructuring. Seema Simmons, Nike's VP of North America running, led the initiative. Nike reported a 4% revenue decline to $11.2B for fiscal Q1 2027 and forecasts further drops. The company's shares fell to a 13-year low. The event seeks to reconnect with women runners, addressing safety concerns highlighted by a 2024 Adidas survey.

Adidas reported record Q3 revenue of 7.3 billion euros, up 9% YoY, and raised full-year profit guidance to 2.5 billion euros. CEO Gulden credited marketing and innovation for growth. Analysts note 11 quarters of strong growth, with market share gains over Nike, which saw Q3 revenue decline 4% YoY.

Morningstar downgraded Nike's competitive advantage to 'narrow' and cut its long-term growth forecasts, but maintains that shares are undervalued. The fair value estimate was reduced by 44% due to increased competition.

Levi's reported Q3 revenue of $8.44B, up 3.5% YoY, beating estimates. Carnival's stock rose 19.2% post-earnings. Scholastic saw revenue decline 3.9% YoY, missing estimates. Nike's revenue fell 4.3% YoY, slightly below expectations. Delta's revenue grew 21.1% YoY, topping estimates but missing EPS guidance. The market has shifted focus from AI to geopolitics and back to fundamentals.