Nike trends in Q4 remained muted, says Truist

Truist keeps a Hold rating and $99 price target on Nike, stating that the firm does not see a significant shift in the management’s tone and prior outlook calling for low single digit revenue decline in the first half of FY25. Nike’s decision to pull back supply of key franchises to help build more excitement around the new launches can help drive long-term value, but investors are likely to remain more cautious on the muted near-term outlook for the company relative to “robust growth” from its peers, the analyst tells investors in a research note. Truist adds that Nike’s 25-times next-12-months expected earnings multiple still reflects a “meaningful premium” to its peer group.