Nike (NYSE: NKE) closed Thursday, December 12, at $77.96, down $0.89, or 1.13%, as Wall Street weighed fresh price target revisions and anticipated new CEO Elliott Hill’s debut on the upcoming earnings call.
While the long-term trend for Nike remains negative, we note that the short-term picture is neutral, with the stock currently trading in the middle of a wide range between $72.71 and $81.18.
Resistance looms between $78.38 and $79.36 for Nike shares, while support levels hover between $76.99 and $77.30.
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Analysts weigh in with mixed sentiment for NKE
Nike’s stock price and investor sentiment are navigating choppy waters, with leading analysts revising their outlooks as the sportswear giant grapples with inventory issues, promotional pressures, and the high expectations surrounding new leadership.
Citi analyst Paul Lejuez maintained a Buy rating on Nike with a price target of $102, noting the short-term pain associated with inventory clearance. Lejuez remarked:
“We expect 2Q25 EPS (12/19 AMC) of $0.58 vs cons $0.64 driven by weaker GM. Investor uncertainty is high given this is new CEO Elliott Hill’s first call with investors and some of NKE’s key retailers have called out elevated promos across the marketplace.”
Lejuez acknowledged that under Hill’s direction, Nike appears to be taking an aggressive stance on clearing out excess inventory, which could result in near-term gross margin pain. He added:
“Given the uncertainty as to whether there will be another reset lower on Hill’s first earnings call, we believe the risk/reward is balanced into 2Q EPS.”
Morgan Stanley has a cautious tone
Morgan Stanley’s analyst Alex Straton took a more measured approach, lowering the price target to $80 from $82 while maintaining an Equalweight rating. Straton notes the challenges ahead, emphasizing the lack of visible fundamentals to suggest a turnaround.
“Heading into the 2Q print, our view is largely unchanged, as we think: 1) 2Q fundamentals will remain challenged, 2) 3Q guidance is likely set below the Street (again), and 3) that Street FY estimates remain overly optimistic – though we don’t think management reinstates FY guidance.”
While Straton sees potential in Hill’s leadership, he cautions that any significant upward movement in Nike’s stock may hinge more on Hill’s commentary than the company’s current performance. According to Straton:
“Altogether, while NKE’s go-forward strategy is outstanding, there’s little evidence of a turnaround in the fundamentals, but it also enjoys a new-CEO halo.”
Stifel awaits signs of stability
Stifel also weighed in, maintaining a Hold rating with a price target of $79. Analyst Jim Duffy highlighted three key challenges for Nike: increased promotions, cautious retail partner feedback, and intensified competition.
However, there is cautious optimism around Elliott Hill’s appointment as CEO.
“The expectation is that Hill will be optimistic about the long-term prospects of Nike and the Jordan brand while also being candid about the immediate obstacles the company faces.”
Nike’s stock faces a period of uncertainty as Wall Street waits to see whether Elliott Hill can chart a successful course for the company.
The next earnings report, scheduled for December 19, will serve as a pivotal moment, offering the first substantial insight into Hill’s strategy and Nike’s ability to overcome near-term headwinds.
For now, the iconic sportswear giant remains in a holding pattern, with analysts split between cautious optimism and concern over lingering challenges.
Featured image via Shutterstock
