Nike’s World Cup Moment Draws Fresh Downgrades
Nike picked an awkward week for a yellow card. A day before the World Cup kickoff, RBC downgraded the sneaker giant and slashed its price target, with Citi following suit. Wall Street had pinned hopes on FIFA for a sales lift, but analysts now see “execution speed” running well behind schedule.
- Currently trading at ~$45, RBC downgraded to Sector Perform from Outperform and cut its price target to $50 from $70 — while Citi trimmed its target to $47 from $53.
- RBC pegs Nike’s revenue growth at 3% annually, half the sector average — while Citi’s EPS forecast of $1.55-$1.75 plunged from the $3-$4 range seen in 2021-2024.
Behind for years: This week’s downgrades reflect a longer story. Since turnaround CEO Elliott Hill arrived in Oct. 2024, has fallen more than 45%, erasing $57B in shareholder value. That comes as its share of the global footwear market fell from 24% in 2016 to roughly 19%, while Skechers, On, and Hoka crowded in. That said, Nike will finally let investors see Hill’s playbook this fall, at its first analyst day since he took over. Consider it the World Cup final for this turnaround.
