Wells Fargo downgraded Nike to Equal Weight and lowered its price target amid weak sales and market saturation concerns.
Nike’s stock has declined 29% year-to-date and 25.6% over the past year, reflecting ongoing challenges in its turnaround strategy. The company faces weak sales in China and a saturated athletic apparel market, prompting investor caution.
Wells Fargo reduced its price target for Nike to $45 from $55 on May 8, downgrading the stock to Equal Weight from Overweight. Analysts cited execution risks under CEO Elliott Hill and competitive pressures as key concerns.
Jim Cramer, while still optimistic about Nike’s long-term prospects, recently expressed uncertainty about the pace of its recovery, comparing its struggles to VF Corp’s Vans brand turnaround.