JPMorgan downgraded Nike to Underweight from Neutral, warning that turnaround decisions will pressure earnings through fiscal 2028. Analyst Matthew Boss said actions through calendar 2026 will linger, including a Greater China online marketplace reset starting January 2027 that creates an unmitigated annual revenue headwind of more than $1 billion, or about 20% of the region's revenue, and U.S. store closures that weigh through the first half of fiscal 2028. The firm cut its fiscal 2027 EPS estimate to $1.55, roughly 10% below consensus, and its fiscal 2028 estimate to $1.72, about 20% below the Street, framing fiscal 2028 as a stabilization year. JPMorgan set a December 2027 price target of $40, down from $47, and expects Nike to outline a three-year plan targeting double-digit operating margins by fiscal 2030 at its November investor day.
Nike IncJPMorgan downgrades Nike to Underweight, cuts EPS estimates and price target, citing earnings pressure from turnaround actions.
JPMorgan Chase & Co