Goldman Sachs has adjusted its price target for Nike (NKE, Financial), lowering it from $88 to $72, while maintaining a Buy rating on the stock. This decision reflects a cautious stance towards the U.S. apparel and softlines sector, amid broader economic concerns.
The change comes as Goldman's economic team revised its forecast for U.S. GDP growth significantly downward. They now project a growth rate of just 0.5% for 2025, down from an earlier prediction of 2.5% for 2024, assessed on a year-end basis. This adjustment is accompanied by an increased expectation of a potential recession, with economists assigning a 45% probability to such an outcome.
Although Goldman Sachs does not fully integrate the possibility of a recession into its financial estimates, it acknowledges that recent market instability, growing geopolitical tensions, and increased tariff rates could negatively impact corporate earnings.
