Nike Faces 45% Stock Slump and Price Target Cut to $50
NKE•Since Elliott Hill’s return 20 months ago, Nike’s shares have fallen over 45%, erasing $57 billion in market value and dragging sports footwear share down to 19% from nearly 25% in 2016. RBC Capital Markets cut its price target from $70 to $50 and expects turnaround benefits by 2027.
1. CEO-Driven Turnaround Under Strain
Elliott Hill returned as CEO 20 months ago aiming to revive Nike’s momentum, but shares have plunged over 45%, wiping out $57 billion in market capitalization and pushing stock to decade lows. Market share in global sports footwear has slipped from nearly 25% in 2016 to about 19%, while quarterly revenue was flat year-over-year and down almost 10% from two years prior.
2. Analyst Downgrade Extends Recovery Timeline
RBC Capital Markets cut Nike’s price target from $70 to $50, citing slower-than-expected revenue growth and delaying turnaround benefits until 2027. Direct-to-consumer sales fell 4% and Converse revenue plunged 35%, intensifying pressure on Nike from Adidas, Skechers and New Balance.
