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UBS maintained its Neutral rating and $56.00 price target on Nike (NYSE:NKE) Monday, citing deteriorating global sales growth trends over the past three months. The firm expects Nike to deliver only an in-line fourth-quarter earnings per share result when it reports. This comes as Nike’s revenue declined 7.3% in the last twelve months, though InvestingPro analysis suggests the stock is currently undervalued, trading at $61.42 with a P/E ratio of 20.14.
UBS anticipates Nike will provide first-quarter earnings guidance between 11 cents and 27 cents per share, below the broader analyst consensus of 37 cents. The sportswear giant has been providing only forward-quarter guidance since its first-quarter fiscal 2025 earnings call. According to InvestingPro data, Nike maintains strong fundamentals with a current ratio of 2.19, indicating healthy liquidity. Get access to 10+ more exclusive ProTips and comprehensive analysis in the Pro Research Report.
The research firm noted Nike may not offer formal fiscal year 2026 guidance due to ongoing tariff uncertainty. If the company does provide full-year guidance, UBS expects an implied earnings range of $0.55-$1.20 per share, significantly below the Street’s expectation of $1.93.
UBS believes Nike’s upcoming quarterly report will cause analyst earnings estimates to decrease and market sentiment to weaken. The options market is pricing in a potential share price move of plus or minus 8.5% following the earnings announcement.
This expected volatility exceeds Nike’s historical average move of 6.0% around earnings reports, a view UBS agrees with based on its channel checks and earnings expectations.
In other recent news, Nike has been the focus of several significant developments. Goldman Sachs has reiterated its buy rating for Nike, maintaining a $72.00 price target despite acknowledging skepticism about the company’s near-term prospects. The firm noted challenges such as inventory issues and competition, but expressed confidence in Nike’s strategic direction, particularly in product innovation and marketing. Truist analysts also maintained a buy rating, highlighting strong sales of Nike’s men’s running shoes, with several models ranking high in the market. They noted the successful introduction of exclusive colorways at retailers like Fleet Feet, contributing to positive consumer response.
Additionally, Nike has implemented price increases on select footwear products, with adjustments now effective in the market. These changes are part of a strategy to navigate the retail environment, and Truist is monitoring sales trends closely. In leadership news, Nike announced the appointment of Michael Gonda as the new Executive Vice President and Chief Communications Officer, effective July 2025. Gonda brings experience from McDonald’s (NYSE:MCD) and is expected to enhance Nike’s global communications strategy. These recent developments underscore Nike’s efforts to strengthen its market position amid ongoing challenges.
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