Nike Holds $78 Price Target, Readies $300M Restructuring Charges and 775 Job Cuts
RBC Capital Markets kept an Outperform rating on Nike with a $78 price target, citing a China recovery that could drive growth over the next one to two years. Nike plans about $300 million in pre-tax restructuring charges in fiscal 2026 Q3 and has cut 775 U.S. roles.
1. Investment Rating and Price Target
RBC Capital Markets reiterated an Outperform rating on Nike and maintained a $78 price target ahead of its fiscal Q3 results, highlighting the company's ongoing recovery in Greater China as a critical growth driver over the next one to two years.
2. Restructuring Charges and Job Cuts
Under a restructuring led by CEO Elliott Hill, Nike expects roughly $300 million in pre-tax severance charges to be recorded in fiscal 2026 Q3, having already eliminated about 775 U.S. positions and reducing corporate roles at Converse to streamline operations.
3. Strategic Outlook and Margin Stabilization
The restructuring initiative aims to align Nike’s operating model with a refreshed product lineup to stabilize margins and revive sales, and management has indicated that additional measures could lead to further restructuring charges.