Piper Sandler lowered its target citing a slower recovery amid tougher promotions and pressure across key markets.
- According to TheFly, Piper Sandler’s estimates for Q2 FY27 and FY27 are now 12% below the Street.
- BofA downgraded Nike to ‘Underperform’ from ‘Neutral’ and cut its price target to $30 from $47 on Friday, citing a longer-than-expected turnaround and weaker earnings expectations, TheFly reported.
- Nike is set to report fiscal Q1 2027 results on Oct. 1, with analysts expecting approximately $11.3 billion in revenue and $0.44 in adjusted EPS, according to Fiscal AI.
Nike (NKE) stock was in focus on Monday after Piper Sandler analyst Anna Andreeva lowered the firm’s price target to $38 from $45 while maintaining a ‘Neutral’ rating ahead of the company’s quarterly results, according to The Fly.
NKE stock was trading in the red, down 1.15% as of Monday morning.
Piper Sandler Lowers Nike EPS Estimate
Piper Sandler raised its first-quarter FY27 sales estimate to align with the Street for North America Wholesale, but lowered its gross margin and earnings per share (EPS) expectations as the promotional backdrop intensified during the quarter, The Fly reported.
For the second quarter (Q2) of FY27 and the full year of FY27, Piper Sandler’s estimates are now 12% below the Street, according to The Fly.
US, EMEA And China Weigh On Recovery
Andreeva said the athletic footwear backdrop is deteriorating in the U.S., while the EMEA macro environment remains under pressure and China remains in flux, The Fly reported.
Piper Sandler also said Nike’s recovery is taking longer, according to TheFly.
Nike’s fiscal fourth-quarter revenue was $11.0 billion, down 1% year over year, while Greater China revenue fell 17% and North America revenue increased 3% on a reported basis. Nike has said it expects revenue to decline in the low- to mid-single digits through the first two quarters of fiscal 2027.
BofA Also Raised Turnaround Concerns
Piper Sandler’s latest call follows Bank of America’s (BofA) downgrade on Friday. BofA lowered Nike to ‘Underperform’ from ‘Neutral’ and cut its price target to $30 from $47, according to TheFly.
BofA analyst Lorraine Hutchinson also lowered the firm’s FY27 and FY28 EPS estimates by 11% and 12%, respectively. Its FY27 EPS forecast was 14% below Visible Alpha consensus, according to The Fly.
BofA expects North America wholesale sales to decline from Q2 FY27 through the remainder of the fiscal year, after the channel grew 14% in fiscal 2026. The firm said sell-through is lagging sell-in in some cases, citing declines in classic styles and new launches that have not met expectations, according to The Fly.
The BofA note also cited pressure on Nike’s classic footwear business, with the firm saying innovation has not yet offset weakness in those products, TheFly reported. Nike is scheduled to report its fiscal first-quarter 2027 results on Oct. 1 after the close of regular trading, according to the company’s investor-relations announcement.
According to Fiscal AI, analysts currently expect approximately $11.3 billion in revenue and $0.44 in adjusted EPS for the quarter.
Retail View On NKE
Retail sentiment on Stocktwits for NKE turned ‘Neutral’ over the past 24 hours, with message volume at ‘Normal.’
NKE shares are down nearly 41% year-to-date.
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