Nike downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo analyst Ike Boruchow downgraded Nike (NKE) to Equal Weight from Overweight with a price target of $55, down from $75. The firm adjusted ratings in retail cut 2026 earnings estimates well below the Street to reflect current tariff headwinds and assumptions for a mild recession. Both headwinds will begin impacting numbers in the second half of 2025, the analyst tells investors in a research note. Wells says Nike’s turnaround is “simply taking longer than hoped,” while today’s macro concerns “will likely kick the can even further out.” The environment is “simply not conducive” to what the new CEO needs to do to fix the model, and without any real valuation support the stock can’t work, contends the firm.