Wall Street Analysts Just Trimmed Price Targets for These 10 Stocks

07. NIKE, Inc. (NYSE:NKE)

Price Reaction after the Price Target Cut: +1.61(+1.72%)

On June 17, Evercore ISI adjusted its perspective on NIKE, Inc. (NYSE:NKE), lowering its price target from $117 to $110 while maintaining an Outperform rating on the stock. This revision reflects Evercore ISI’s concerns about a challenging environment ahead for the sportswear giant, exacerbated by mixed results from key product launches in the fourth fiscal quarter and potential order cancellations for Fall 2024. These factors contribute to expectations that NIKE, Inc. (NYSE:NKE) might revise down its revenue guidance for the first half of fiscal 2025, now anticipated to decline by 4% year-over-year, a more pessimistic outlook compared to earlier estimates. Despite these challenges, Evercore ISI remains optimistic about NIKE, Inc. (NYSE:NKE) long-term prospects, citing potential for a significant recovery despite the possibility of near-term disappointment if fiscal 2025 outlook adjustments are necessary. The firm notes that NIKE, Inc. (NYSE:NKE) stock price has stabilized, suggesting that market expectations may already account for potential earnings per share adjustments for fiscal 2025, currently projected below the consensus of $3.95.

Evercore ISI’s analysis underscores NIKE, Inc. (NYSE:NKE) proactive inventory management and strategic investments for growth, supported by substantial cost savings of $2 billion. Additionally, the firm highlights confidence from NIKE, Inc. (NYSE:NKE) key retailers in the company’s innovation pipeline for 2025. In response to its revised outlook, Evercore ISI has also lowered its fiscal 2025 EPS estimate for Nike to $3.60, down from $3.90 previously, indicating alignment with their cautious stance. Despite these adjustments, Evercore ISI emphasizes NIKE, Inc. (NYSE:NKE) transparent approach to turnaround strategies and aggressive steps to position itself for a meaningful recovery in the coming year.