Nike has chartered a path to improving its share price, but the athletic retailer faces several headwinds that could foil its recovery plan, according to Evercore ISI. The investment firm downgraded the stock name to in-line from outperform. It also lowered its price target on shares to $46 from $57, implying nearly 7% upside from Monday’s close. “Turnarounds at scale take time,” analyst Michael Binetti said Tuesday in a note. “Nike’s always been a big battleship to turn, but ~2-years into the turnaround our checks are still picking up unexpected new resets lower in the wholesale channel … minimal needle-moving innovation in the pipeline into CY27, and near-term execution issues.” Shares of Nike have plummeted 32% year to date as the company contends with a profit-margin crunch linked to the Trump administration’s tariffs . In addition, Nike has reported a sales slump in China , or a market that once served as a considerable driver of its growth. NKE YTD mountain Shares of Nike have fallen 32% in the year to date. Under CEO Elliott Hill, Nike began to overhaul its corporate strategy two years ago. The plan calls for the company to promote greater innovation across the company’s product lines and use key retail partners to boost sales, among other strategic moves. However, it may take awhile for the turnaround strategy to translate to meaningful gains for Nike’s bottom line — a fact that could weigh on shares in the near term, according to Evercore ISI. “We see rising probability that Nike will have to signal Consensus lower again in the near-term to avoid potential for a far worse scenario where it would have to lower the full [fiscal year 2027] outlook … which would be highly distracting as it tries to refocus investors on a better narrative on that day,” Binetti wrote. Evercore ISI’s call falls in line with consensus on Wall Street. Of the 41 analysts covering Nike, 22 have a hold on the stock, LSEG data shows.
