"The market has shifted against Nike": Berenberg predicts a further 19% drop in the stock price
Analysts downgraded the sports retailer's securities
Analysts at Berenberg downgraded the stock rating of sports apparel and footwear manufacturer Nike / Photo: Unsplash/Luis Felipe Lins
Analysts at Berenberg downgraded their rating on shares of sports apparel and footwear manufacturer Nike from “Hold” to “Sell” and lowered their price target from $49 to $27.5, according to Barron’s. This implies a drop of nearly 19% from current levels. During trading on Tuesday, October 6, Nike shares rose 0.7%.
“It seems Nike has come to terms with a smaller share of the athletic apparel market,” noted Berenberg strategist Nick Anderson. Nike’s forecast for fiscal year 2027, which the company provided following its first-quarter earnings report, disappointed the market. The company stated that for the year ending May 31, 2027, it expects revenue to decline by 7–9%, which would represent the lowest annual sales volume since 2020. By comparison, analysts had expected a decline of just 2.4%.
Nike also announced a change to its operating model to “set the stage for long-term growth.” The brand pledged to focus on modernizing its supply chain and transitioning to a structure based on three geographic regions. Specifically, the Greater China region, where sales have been declining for several years, will be merged with the broader Asia-Pacific region.
“Nike’s strategy is to focus its athletic apparel division on a few key areas. To us, this looks like an acknowledgment that the market structure has irreversibly changed—and not in Nike’s favor,” Anderson added.
Nike did not respond to Barron’s request for comment.
How Do Other Analysts View Nike Stock?
Investors have long been waiting for Nike’s change in course to bear fruit and begin to be reflected in its stock price, according to Barron’s. In 2026, the stock fell 46%, and compared to its record closing high in November 2021, its value has plummeted by about 80%.
After such a decline, one might expect some optimism to return to Wall Street, notes Barron’s. However, only 26% of analysts covering Nike stock recommend buying it. According to FactSet, this is the lowest figure in at least 20 years, whereas at the end of 2025, it stood at 65%.
This article was AI-translated and verified by a human editor
