Citi analyst Paul Lejuez lowered his price target on Nike (NYSE: NKE) to $32 from $39, while maintaining a Neutral rating on the stock.

Nike's first-quarter earnings per share came in above expectations, though the beat was driven by weaker sales and lower selling, general, and administrative expenses rather than revenue strength. Management issued fiscal year 2027 sales guidance reflecting a high-single-digit decline, which fell below market expectations, with earnings before interest and taxes projected to fall more steeply than sales.

The company announced a $2.5 billion cost savings program, representing approximately 5.5% of fiscal year 2026 sales, as it contends with pressure in its Sportswear, Jordan, and China segments, which management expects to persist through fiscal year 2028.

Nike plans to provide additional detail on its five-year outlook at an upcoming investor day. According to Lejuez, management is now pointing to fiscal year 2029 as the year its "Pace" initiatives could begin to show measurable results.

Lejuez noted that while Nike could potentially exceed some of the guidance it provided, there is "no justification for NKE to receive a premium multiple versus its growing peers."