Truist Securities downgrades Nike to Sell from Hold, keeps price target at $29

Nike (NKE) shares rose 19% in a month, but Morgan Stanley cut its price target to $25, arguing the company's sales reset is unfinished. Revenue fell 4% to $11.21B in Q1, with sportswear and Jordan categories declining. Management expects high-single-digit revenue decline for the fiscal year. Morgan Stanley sees potential downside at the upcoming investor day, with sales expected to settle near $40B, 22% below the 2024 peak.

Truist downgraded Nike (NKE) to Sell, maintaining a $29 price target. The firm argues the stock's 19% rally doesn't reflect business improvements, citing valuation at 27x earnings and risks in Sportswear and Jordan businesses. Analysts note challenges in running, China, and recent underperforming product launches. Fiscal 2028 EPS estimate was cut to $1.30, below consensus of $1.50.

Truist downgraded Nike (NKE) to 'Sell', citing revenue analyses suggesting sales of $40B, 15% below FY31 consensus. Nike reported a 4% revenue decline in Q1 2027, missing expectations, with China revenue down 26%. Sportswear and Jordan businesses declined, while Running and Global Football grew. NKE shares are down 33% YTD.

Nike plans to cut back on Jordan retro releases after the brand's revenue fell by a mid-teens percentage in Q1 2027. Nike's overall revenue was $11.213 billion, down 4% YoY, and it forecasts a high-single-digit percentage decline for fiscal 2027. Jordan Brand accounted for 13% of Nike's global business during the quarter.

FitLab and affiliates filed for Chapter 11 on Oct. 26, listing $10M-$50M in assets and over $100M in debts. The filing follows the end of a partnership with Nike, which led to financial strain. FitLab plans to sell assets and exit leases during the bankruptcy process. Nike is also restructuring to cut costs.

Nvidia, Nike, and 10 other companies objected to OKX-ICE's tokenized stock venue, bringing total objections to 50. The venue, a joint venture between ICE and OKX, plans to offer tokenized U.S. stocks. Companies have 30 days to object under SEC rules. Nasdaq reportedly encouraged some firms to opt out, citing concerns about price transparency and trade reporting.