Nike price target lowered to $85 from $90 at RBC Capital

Investing.com - RBC Capital has lowered its price target on Nike (NYSE:NKE) to $85.00 from $90.00 while maintaining an Outperform rating on the stock. With Nike currently trading at $68.06, analyst targets range from $38 to $120, according to InvestingPro data.

The adjustment follows Nike’s first-quarter fiscal 2026 results, which showed broadly stable revenues of $46.44 billion but lower gross margins of 41.94% and earnings than anticipated. InvestingPro data reveals that 20 analysts have revised their earnings downward for the upcoming period.

RBC Capital cited higher-than-expected selling, general, and administrative expenses (SG&A) as a key factor in the reduced price target, along with incremental U.S. tariff impacts forecasted for the second quarter and full fiscal year 2026.

Despite these challenges, the investment firm expressed encouragement about the "contained progress" Nike is making in its recovery efforts.

RBC Capital indicated it would like to see more parts of Nike’s product offerings refreshed and at a faster pace to accelerate the company’s recovery, which it currently describes as "fairly contained."

In other recent news, Nike’s first-quarter results have been a focal point for analysts, leading to several updates on the company’s stock ratings and price targets. KeyBanc upgraded Nike’s stock rating from Sector Weight to Overweight, citing improving trends from the company’s Win Now initiatives. TD Cowen also raised its price target for Nike to $86, highlighting a 4% year-over-year revenue growth in North America and stable performance in EMEA. UBS maintained a Neutral rating but increased its earnings per share estimates for fiscal years 2026 and 2027 following an earnings beat. Truist Securities reiterated its Buy rating, noting that Nike’s first-quarter results surpassed expectations and second-quarter guidance remains strong despite some economic challenges. Piper Sandler raised its price target to $84, pointing out a sales growth inflection in the first quarter, with three out of four geographical regions showing positive results. These developments reflect a broad acknowledgment of Nike’s recent performance improvements and strategic progress.

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