Nike Faces Downward Price Target Revision from JP Morgan Analyst

JP Morgan's Matthew Korn lowered their price target on Nike (NYSE: NKE) by 4.2% from $142 to $136 on 2023/09/25. The analyst maintained their Strong Buy rating on the stock.

In a note previewing Nike's Q1 2024 earnings, scheduled for release on September 28, Korn highlighted improvements in demand for the months of July and August compared to June. The analyst noted that demand significantly exceeded supply at key wholesale accounts, citing "recent fieldwork." However, Korn also acknowledged the need to factor in lowered Q1 China estimates. The analyst explained that macro-driven, below-plan, sell-through trends industry-wide had put pressure on these estimates, leading to the reduction in the price target.

Adding to the downward revision, Jefferies analyst Randal Konik issued an update on NKE on September 25. Konik lowered their price target by 28.6%, from $140 to an undisclosed amount, and downgraded their rating on the stock from Strong Buy to Hold.

The overall sentiment among analysts towards Nike remains positive. Currently, 72.7% of top-rated analysts rate NKE as a Strong Buy or Buy, while 18.2% see it as a Hold. Only 9.1% of analysts recommend or strongly recommend selling the stock.

Analysts' consensus forecast for Nike's upcoming year is that it will deliver earnings per share (EPS) of $3.79. If their predictions hold true, NKE's next yearly EPS will see a 15.9% increase compared to the previous year.

Looking at the stock's performance, since Nike's last quarterly report on May 31, the share price has declined by 13.7%. Year-over-year, the stock is down 7.8%. During the same period, Nike has trailed behind the broader market, as the S&P 500 has experienced a decrease of 15.4%.

Matthew Korn, the JP Morgan analyst who lowered Nike's price target, is ranked in the top 24% out of 4,337 Wall Street analysts by WallStreetZen. With an average return of 6.1% and a win rate of 43.8%, Korn specializes in the Communication Services and Consumer Cyclical sectors, among others.

Nike, Inc., founded in 1964 and headquartered in Beaverton, OR, is a global leader in athletic footwear, apparel, equipment, and accessories. The company operates in the United States and internationally, offering a wide range of products for men, women, and children.

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