UBS cut its price target on Nike to $42 from $48, maintaining a Neutral rating as analyst Jay Sole said channel checks show the company's global sales growth trend has worsened over the past three months. UBS expects Nike to miss fiscal first-quarter 2027 earnings estimates by about 5 cents per share and to guide fiscal second-quarter EPS to roughly 31 cents to 43 cents, well below the Street's 53-cent estimate. The firm also sees a risk that Nike uses the upcoming earnings report to lower fiscal 2027 expectations ahead of its November investor day, and it believes investors remain too optimistic about the magnitude of potential earnings revisions. Options markets are pricing in an approximately 8% move around the event, compared with Nike's historical average move of about 6.7%. Nike recently traded around $35.78, just above its 52-week low of $35.76, and the stock has fallen roughly 49% over the past year, with Morgan Stanley, BMO and UBS all highlighting downside risks.
UBS Group AGUBS's own analyst issued the lowered Nike price target and bearish earnings forecast
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Nike IncUBS cut its Nike price target to $42 and warned of further earnings cuts ahead of the earnings report
