Berenberg cuts Nike price target to $27.50 and downgrades stock to Sell
Berenberg downgraded Nike to Sell and lowered its price target from $49 to $27.50. The brokerage cited a shifted market structure, weaker sportswear sales and inventory challenges, especially in China. It reduced revenue forecasts by 6.5% for FY27, 11% for FY28 and 13% for FY29, and cut EPS estimates by 38%, 46% and 34% for the same periods, projecting FY27 EPS of $1.08. Nike shares moved modestly in pre‑market trading following the note.
Why it matters
Berenberg expects Nike's sales to stay under pressure through FY27/28 and sees no restructuring benefits until FY29, which could weigh on the stock’s valuation. The lower price target and earnings forecasts may prompt investors to reassess the company's growth outlook.
Key facts
- 1Berenberg downgraded Nike from Hold to Sell. investing.com
- 2The price target was cut from $49 to $27.50. investing.com
- 3Revenue estimates were reduced by 6.5% for FY27, 11% for FY28 and 13% for FY29. investing.com
- 4EPS estimates were lowered by 38% for FY27, 46% for FY28 and 34% for FY29. investing.com
- 5Berenberg now forecasts FY27 EPS of $1.08. investing.com
- 6Nike shares were up 1.5% at $34.4 in early trading, despite the downgrade. marketscreener.com
Summary written by AlphAI from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.