Stifel maintains Nike stock hold with $75 target amid tariff concerns

On Thursday, Stifel analysts maintained a Hold rating on Nike stock (NYSE:NKE) with a consistent price target of $75.00. The stock, currently trading near its 52-week low of $55.40, has seen significant pressure with a 31.7% decline over the past six months. Following the release of Nike’s third-quarter fiscal 2025 financial report on March 20, 2025, and the subsequent 10-Q filing, analysts have provided further insights into the company’s performance and challenges ahead. According to InvestingPro, 19 analysts have recently revised their earnings expectations downward for the upcoming period.

The third-quarter results, which were filed after market close on Thursday, April 3, 2025, were better than initially feared, thanks in part to a favorable shift in North American shipments. Despite this, Nike faces a more challenging outlook for the fourth quarter of fiscal 2025, with InvestingPro data showing an expected 11% revenue decline for the current fiscal year. Stifel analysts pointed out that reciprocal tariffs are exerting significant pressure on the cost of goods sourced from outside the United States.

While the latest 10-Q filing did not offer any new updates regarding the tariff situation, it did reveal several key points of interest. Analysts highlighted an excess of inventory in North America, a diminishing average selling price (ASP) headwind, particularly in the footwear category, and signs of improving inventory alignment outside of North America.

The analysts acknowledged Nike’s leading market position as a competitive advantage. However, they expressed caution regarding the company’s stock, citing the potential risk tariffs pose to profits. In the context of a marketplace that is undergoing a cleanup and reset, the tariff-threatened environment presents significant challenges, leading Stifel to maintain their Hold rating on Nike shares.

In other recent news, Nike has reported several significant developments. Analysts from BMO have observed promising performance in Nike’s new running products, including the Vomero 18 and Pegasus Premium, which have sold out quickly. Jefferies analysts maintain a Buy rating for Nike, setting a price target of $115, while noting that the company’s current market valuation resembles that of 2016-2018. Piper Sandler continues to rate Nike stock as Overweight with a $90 target, despite projecting a decline in sales for Nike’s Classics franchises, which could impact overall sales. DA Davidson has reiterated a Buy rating with a $273 price target, highlighting Nike’s better-than-expected North American performance and its strategic inventory management efforts.

Truist Securities adjusted Nike’s price target to $82, maintaining a Buy rating, following Nike’s recent earnings presentation, which outlined intensified turnaround strategies. These strategies include improvements in product offerings and wholesale partnerships, which are seen as positive steps towards growth. Despite some near-term challenges, analysts express confidence in Nike’s long-term potential. Investors are closely watching Nike’s strategic decisions as the company aims to navigate its turnaround plans and achieve growth.

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