Sell Nike Stock, Says Analyst. Why the Market Shift Looks 'Irreversible.' -- Barrons.com
Dow Jones2026/10/06 12:55By Callum Keown Nike stock just can't stop falling. The sportswear giant's shares were down 1% ahead of the open Tuesday and on track to close at a fresh 13-year low. It picked up another downgrade, too, as Berenberg analysts cut their rating to Sell from Hold. Their price target was slashed to $27.50 from $49. "Nike appears to have accepted a smaller place in sportswear," analyst Nick Anderson said in a note early Tuesday. Nike's fiscal year 2027 outlook disappointed the market after its first-quarter earnings Thursday. The company said it expects revenue to decline by high single digits in the year to May 31, 2027. "Nike's solution is to organize sportswear around smaller focus areas. To us, this reads as an admission that market structure has shifted irreversibly against Nike," Berenberg analysts added. Nike didn't immediately respond to Barron's request for comment. BNP Paribas analyst Laurent Vasilescu reiterated his multiyear Underperform rating on the stock Tuesday, noting that Nike did not disclose comparable sales by region in its quarterly report. "When companies pull back on disclosures, it is never a good sign," Vasilescu said, maintaining a price target of $19, implying a 44% downside to Monday's closing price. He added that he was also concerned about the sustainability of Nike's dividend payment, noting that free cash flow turned negative this quarter for the first time since 2024. Investors have long been waiting for the turnaround to take effect and start showing in the stock price. The shares have fallen 47% in 2026 and are down 81% from their record closing high in November 2021. After such a decline, you might expect some optimism on Wall Street. However, just 26% of analysts covering Nike have a Buy rating on the stock. That's the lowest level in at least 20 years, according to FactSet data, and down from 65% at the end of 2025. The wait for a comeback goes on. Write to Callum Keown at callum.keown@dowjones.com This content was created by Barron's, which is operated by Dow Jones & Co. Barron'
By Callum Keown
Nike stock just can't stop falling.
The sportswear giant's shares were down 1% ahead of the open Tuesday and on track to close at a fresh 13-year low.
It picked up another downgrade, too, as Berenberg analysts cut their rating to Sell from Hold. Their price target was slashed to $27.50 from $49. "Nike appears to have accepted a smaller place in sportswear," analyst Nick Anderson said in a note early Tuesday.
Nike's fiscal year 2027 outlook disappointed the market after its first-quarter earnings Thursday. The company said it expects revenue to decline by high single digits in the year to May 31, 2027.
"Nike's solution is to organize sportswear around smaller focus areas. To us, this reads as an admission that market structure has shifted irreversibly against Nike," Berenberg analysts added.
Nike didn't immediately respond to Barron's request for comment.
BNP Paribas analyst Laurent Vasilescu reiterated his multiyear Underperform rating on the stock Tuesday, noting that Nike did not disclose comparable sales by region in its quarterly report.
"When companies pull back on disclosures, it is never a good sign," Vasilescu said, maintaining a price target of $19, implying a 44% downside to Monday's closing price.
He added that he was also concerned about the sustainability of Nike's dividend payment, noting that free cash flow turned negative this quarter for the first time since 2024.
Investors have long been waiting for the turnaround to take effect and start showing in the stock price. The shares have fallen 47% in 2026 and are down 81% from their record closing high in November 2021.
After such a decline, you might expect some optimism on Wall Street. However, just 26% of analysts covering Nike have a Buy rating on the stock. That's the lowest level in at least 20 years, according to FactSet data, and down from 65% at the end of 2025.
The wait for a comeback goes on.
Write to Callum Keown at callum.keown@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
October 06, 2026 08:55 ET (12:55 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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