Analyst Peter McGoldrick of Stifel Nicolaus maintained a Hold rating on Nike, retaining the price target of $64.00.
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Peter McGoldrick has given his Hold rating due to a combination of factors affecting Nike’s current market position. The company’s revenue decline is moderating, thanks to strategic decisions like reducing digital promotions and shifting focus away from certain product lines. However, challenges remain, such as unfavorable fashion trends in footwear and market share losses in Greater China.
While Nike’s focus on performance innovation is seen as a positive step towards restoring balance, the stock’s current valuation already reflects optimistic earnings expectations for FY27. This requires a significant turnaround in revenue growth and successful navigation of tariffs, which are uncertain at this point. Consequently, McGoldrick believes that while a recovery is likely, the risks associated with the timeline and execution justify a Hold rating, as investors may not be adequately compensated for these risks in the near term.
McGoldrick covers the Consumer Cyclical sector, focusing on stocks such as Fox Factory Holding, Kontoor Brands, and Crocs. According to TipRanks, McGoldrick has an average return of 2.3% and a 50.00% success rate on recommended stocks.
In another report released on September 23, Telsey Advisory also maintained a Hold rating on the stock with a $75.00 price target.