Evercore Downgrades Nike, Cuts Target to $46 on Retail Weakness and Delays
NKE•Nike shares fell 1.4% after Evercore cut its rating to In Line and trimmed the price target to $46, citing weak U.S. retail channels and World Cup merchandise delays. The brokerage lowered FY27 EPS to $1.65 and FY28 to $2.20, warning of guidance cuts ahead of the 2026 analyst day.
1. Evercore Downgrade and Price Target Cut
Evercore downgraded Nike to In Line from Outperform and cut its price target to $46 from $57, prompting a 1.4% premarket share decline.
2. Channel Checks Reveal Weak Demand
Field checks showed weakening U.S. retail channels with higher order cancellations and delays in World Cup merchandise shipments alongside softer Jordan retro product performance.
3. EPS Forecast Reductions Increase Guidance Risk
The firm trimmed fiscal 2027 EPS to $1.65 from $1.70 and fiscal 2028 to $2.20 from $2.25, warning of possible guidance reductions ahead of the 2026 analyst day.
4. Offsets from Performance Categories and Valuation
Solid results in performance-focused lines such as Nike Run and a potential $1 billion tariff refund could bolster investments, while an EV/sales multiple near 1.5x offers limited downside support.
