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Research Alert: CFRA Lowers Opinion On Shares Of Nike, Inc. To Hold From Buy
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Research Alert: CFRA Lowers Opinion On Shares Of Nike, Inc. To Hold From Buy
Jun 27, 2025 10:12 AM

12:45 PM EDT, 06/27/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target by $10 to $75, based on 30x our FY 27 (May) EPS estimate and in line with the company's three-year average forward P/E multiple. However, we note this is looking past FY 26 and into FY 27 as the company navigates its turnaround strategy. We lower our FY 26 EPS estimate by $1.50 to $1.75 and initiate our FY 27 EPS estimate at $2.50, noting a longer-than-expected turnaround due to bloated inventory and trade uncertainty. NKE posted better-than-expected EPS and revenue. Yet, the company saw EPS fall more than 80% Y/Y and revenues decline 12% as it continues to position inventory to align with its new Win Now strategy. Management expects a 75-bp impact to FY 26 gross margin from the current tariff levels (30% China, 10% Rest of World). Shares now trade over 40x analyst estimates for FY 26 and 29x FY 27 estimates. In our opinion, these multiples have priced in a significant recovery to earnings over the next 24 months. We lower our opinion on valuation and higher expectations.

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