Nike (NKE) PT Lowered to $75 at TD Cowen

TD Cowen analyst John Kernan lowered the price target on Nike (NYSE: NKE) to $75.00 (from $89.00) while maintaining a Hold rating.

The analyst commented: "Nike has a competitive advantage in basketball and areas of lifestyle/fashion but emerging competitors in footwear and apparel that position product and marketing to consumers with other viewpoints and tastes can continue to gain share. We see lower growth and higher risk going forward and valuation multiples heading lower. Q1 margin guidance is the worst in 20+ years. We favor SKX, DECK, ONON. Our $75 target represents 21x our FY26E EPS, ~17x EV/EBITDA. We are modeling sub $5 in EPS by FY29E on a +3% revenue CAGR, modest EBIT margin recovery to ~14%, including (8% float reduction). Our PT is supported by our DCF model carrying a 16% terminal EBIT margin and 3.5% terminal growth rate."

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