Williams Trading analyst Sam Poser has revised his outlook on Nike (NKE, Financial), reducing the firm's price target for the stock from $93 to $73. Despite maintaining a Buy rating on the shares, this adjustment reflects significant concerns over the potential impact of increased tariffs on financial metrics like margins, pricing, and demand.
The firm has implemented a broader strategy across its retail coverage, cutting price targets and estimates in response to an average 20.4% decrease in price-to-earnings multiples. This move underscores the uncertainty brought about by tariffs, particularly the added 145% tariff on goods imported from China. The escalating trade tensions have notably stalled product shipments to the United States, posing significant challenges for brands that have substantial manufacturing operations in China and depend heavily on the U.S. market for sales.
The possibility that companies might either withdraw their forward guidance or refrain from offering any altogether is a growing concern. This development is based on recent channel checks suggesting that the increased tariff has severely disrupted sales and margin prospects for Nike and other similar brands.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 36 analysts, the average target price for Nike Inc (NKE, Financial) is $77.98 with a high estimate of $120.00 and a low estimate of $40.00. The average target implies an upside of 44.48% from the current price of $53.97. More detailed estimate data can be found on the Nike Inc (NKE) Forecast page.
Based on the consensus recommendation from 41 brokerage firms, Nike Inc's (NKE, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Nike Inc (NKE, Financial) in one year is $96.02, suggesting a upside of 77.91% from the current price of $53.97. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Nike Inc (NKE) Summary page.
