Deutsche Bank Aktiengesellschaft Issues Pessimistic Forecast for NIKE (NYSE:NKE) Stock Price

Key Points

• Deutsche Bank cut NIKE’s price target from $45 to $37 and maintained a “hold” rating, implying only 4.55% upside from the stock’s $35.39 price.
• Analyst sentiment remains cautious: NIKE has a consensus “hold” rating and an average price target of $46.77, with ratings spanning strong buy to sell.
• NIKE recently beat quarterly earnings and revenue estimates, but revenue declined 1.1% year over year. Shares are near their 12-month low, while concerns include weak China demand, margin pressure, competition and a potentially prolonged recovery.

NIKE (NYSE:NKE - Get Free Report) had its target price cut by stock analysts at Deutsche Bank Aktiengesellschaft from $45.00 to $37.00 in a research report issued to clients and investors on Monday. The brokerage currently has a "hold" rating on the footwear maker's stock. Deutsche Bank Aktiengesellschaft's target price suggests a potential upside of 4.55% from the company's current price.

Other analysts have also issued research reports about the stock. Oppenheimer set a $52.00 target price on shares of NIKE and gave the company an "outperform" rating in a research report on Wednesday. Telsey Advisory Group set a $44.00 price target on shares of NIKE and gave the company a "market perform" rating in a research note on Tuesday, September 15th. CICC Research lowered their price objective on NIKE from $58.00 to $44.80 and set a "neutral" rating on the stock in a report on Thursday, July 2nd. Morgan Stanley set a $31.00 price objective on NIKE and gave the stock an "underweight" rating in a report on Thursday, September 10th. Finally, UBS Group set a $42.00 price objective on NIKE and gave the stock a "neutral" rating in a research note on Thursday, September 17th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, twenty-one have issued a Hold rating and seven have assigned a Sell rating to the stock. Based on data from MarketBeat.com, NIKE has a consensus rating of "Hold" and an average price target of $46.77.

NIKE Stock Performance

Shares of NKE stock opened at $35.39 on Monday. The company has a current ratio of 1.96, a quick ratio of 1.36 and a debt-to-equity ratio of 0.40. NIKE has a 12-month low of $35.22 and a 12-month high of $76.97. The business's 50 day moving average is $39.58 and its two-hundred day moving average is $43.48. The company has a market capitalization of $52.50 billion, a P/E ratio of 16.93, a P/E/G ratio of 1.84 and a beta of 1.10.

NIKE (NYSE:NKE - Get Free Report) last announced its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.11 by $0.09. The firm had revenue of $10.97 billion for the quarter, compared to analyst estimates of $10.85 billion. NIKE had a return on equity of 16.54% and a net margin of 6.70%.The business's revenue was down 1.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.14 EPS. Analysts expect that NIKE will post 1.66 EPS for the current fiscal year.

Insider Buying and Selling at NIKE

In related news, insider Amy Montagne sold 4,867 shares of the company's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $42.05, for a total transaction of $204,657.35. Following the completion of the sale, the insider owned 57,436 shares of the company's stock, valued at approximately $2,415,183.80. This represents a 7.81% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Matthew Friend sold 2,463 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $41.60, for a total transaction of $102,460.80. Following the completion of the sale, the chief financial officer owned 82,165 shares of the company's stock, valued at approximately $3,418,064. The trade was a 2.91% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 14,974 shares of company stock valued at $600,126. Insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On NIKE

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Westerkirk Capital Inc. raised its stake in NIKE by 52.4% during the fourth quarter. Westerkirk Capital Inc. now owns 131,220 shares of the footwear maker's stock worth $8,360,000 after purchasing an additional 45,100 shares during the period. OMERS ADMINISTRATION Corp boosted its holdings in NIKE by 77.9% in the 4th quarter. OMERS ADMINISTRATION Corp now owns 2,526,179 shares of the footwear maker's stock valued at $160,943,000 after purchasing an additional 1,106,499 shares during the last quarter. OneDigital Investment Advisors LLC grew its stake in shares of NIKE by 32.8% in the 2nd quarter. OneDigital Investment Advisors LLC now owns 244,296 shares of the footwear maker's stock valued at $10,028,000 after buying an additional 60,375 shares during the period. Deutsche Bank AG grew its stake in shares of NIKE by 8.0% in the 2nd quarter. Deutsche Bank AG now owns 3,566,634 shares of the footwear maker's stock valued at $146,410,000 after buying an additional 264,576 shares during the period. Finally, Quantitative Investment Management LLC acquired a new stake in shares of NIKE during the 2nd quarter worth approximately $2,459,000. Institutional investors and hedge funds own 64.25% of the company's stock.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Jefferies argues that NIKE is at “rock bottom” and that a stronger-than-expected earnings report or improved outlook could potentially allow the stock to double. Investors are watching for evidence that CEO Elliott Hill’s product-focused strategy, renewed wholesale relationships and reduced discounting are beginning to stabilize the business. Nike Stock Is at Rock Bottom. It Can Double From Here, Analyst Says.
• Positive Sentiment: Options markets imply an approximately 8.3% move in NKE following earnings, creating a significant potential catalyst. The depressed valuation and dividend yield may also attract bargain hunters if management provides credible evidence of a turnaround. Nike Stock Could Swing 8.3% on Q1 Earnings
• Neutral Sentiment: Several recent insider purchases, including purchases by CEO Elliott Hill and other directors, could signal confidence at current prices. However, other executives have sold shares, making the overall insider activity mixed.
• Neutral Sentiment: Goldman Sachs lowered its price target from $42 to $38 and maintained a neutral rating, while StoneX initiated coverage with a hold. These views suggest limited near-term conviction ahead of the earnings release. Goldman Sachs Cuts NIKE Price Target
• Negative Sentiment: Bank of America downgraded NIKE to underperform and cut its price target to $30, citing prolonged sales declines, competitive pressure from Adidas, weak China demand and the risk that the recovery will take longer than expected. Bank of America Just Cut Nike to $30
• Negative Sentiment: Recent reports highlight a 12% sales decline in China, margin pressure from tariffs and discounting, inventory concerns and the difficulty of rebuilding NIKE’s brand momentum. Analysts caution that even a quarterly earnings beat may not be enough to establish a durable recovery.

NIKE Company Profile

NIKE, Inc is a global athletic footwear, apparel and equipment company headquartered near Beaverton, Oregon. The company designs, develops and markets products under the NIKE, Jordan and Converse brands, serving athletes and consumers across a broad range of sports and lifestyle categories.

NIKE's offerings include athletic and casual footwear, sportswear, apparel, accessories and athletic equipment. The company distributes its products through company-owned retail stores, digital platforms, wholesale partners and independent distributors.

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