BofA Securities Reiterates Neutral Rating on Nike (NKE)

BofA Securities analyst Lorraine Hutchinson reiterated a Neutral rating and $55.00 price target on Nike (NYSE: NKE)

The analyst comments: “We don’t expect Nike to give F27 guidance but think the commentary on North America sell-through and an update on China will be the key focuses. Nike already guided sales (LSD) for C26, with gains in North America offsetting declines in China, and gross margin expansion beginning in 2Q. We expect Nike to provide a longer-term roadmap at its Fall Investor Day, unless it’s pushed due to the CFO change. While strong results in Running and NA are encouraging, the sales inflection is several quarters away, leaving little room for multiple expansion; we maintain our Neutral rating.

Nike announced that David Denton will join as CFO effective 8/17, bringing significant public company experience, including prior CFO roles at Pfizer, Lowe’s, and CVS Health. Matt Friend will step down at the time of Denton’s appointment. 4Q results will include a one-time benefit from tariff refunds that was not included in prior guidance. Excluding this, results are broadly in line with prior guidance. We model 4Q EPS of $0.11, in line with consensus, based on sales -3% (guidance -2 to -4%). 4Q includes some World Cup sell-in, with most sell-through in 1Q27.”

For an analyst ratings summary and ratings history on Nike click here. For more ratings news on Nike click here.

Shares of Nike closed at $42.38 yesterday.

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