Nike loses ground after JPM warns reset efforts may weigh through FY28

Nike NKE.N is down about 3% premarket after J.P. Morgan downgraded the sportswear maker to "underweight" from "neutral" and cut its price target to $40 from $47.

The brokerage said management discussions and recent filings suggest the impact of NKE's "Win Now" turnaround actions will linger through the second half of fiscal 2027 and into fiscal 2028, extending pressure on earnings.

J.P. Morgan added that ongoing actions, including the Greater China reset and North America store closures, create additional headwinds and increase risk to consensus expectations.

NKE shares are down about 33% year to date.