Nike’s Hold Rating Amid Macroeconomic Uncertainty and Brand Turnaround Challenges

Analyst Paul Lejuez from Citi maintained a Hold rating on Nike (NKE – Research Report) and keeping the price target at $57.00.

Paul Lejuez has given his Hold rating due to a combination of factors including the macroeconomic uncertainty and the complexities involved in Nike’s global brand turnaround. Despite expecting a slight earnings beat for the fourth quarter of fiscal year 2025, there is caution regarding the guidance for the first quarter of fiscal year 2026, with anticipated declines in sales and earnings per share.
The uncertainty surrounding the timing of Nike’s ability to achieve innovation at scale and drive sustainable topline growth is a significant concern. While there is potential for positive developments in the latter half of fiscal year 2026, the current sentiment remains more negative, with investors cautious about ongoing headwinds in classic franchise management. The balanced risk and reward scenario into the fourth quarter earnings also supports the Hold rating.

In another report released today, Wells Fargo also maintained a Hold rating on the stock with a $60.00 price target.