Nike (NKE) PT Lowered to $65 at Telsey

Telsey analyst Christina Fernandez lowered the price target on Nike (NYSE: NKE) to $65.00 (from $72.00) while maintaining a Market Perform rating.

The analyst commented: "In addition to the quarter's result, we continue to focus on the medium-term outlook and the strategic actions that could allow Nike to inflect back to growth. On the profit side, we look for diminishing pressures on the gross margin from tariffs and markdowns that can return Nike to operating margin expansion following a ~400 bps decline in FY25 and expectations for another ~200 bps decline in FY26. Some of Nike's strategic priorities include: 1) product innovation: launches across running, football, basketball, training, and sportswear footwear and apparel; 2) wholesale distribution: contribution of expanded relationships; 3) DTC: elevating the store presentation and experience through remodels and retrofits; and 4) marketing: more impactful brand campaigns, along with community activations. We maintain our Market Perform rating, but are lowering our 12-month price target to $65 from $72, based on applying a P/E multiple of ~29x to our FY27 EPS estimate of $2.25 (down from $2.38)."

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