Sales Alert

Nike has issued a sales warning, causing Wall Street's bullish sentiment towards its stock price to drop to its lowest level since 2017. Several analysts, including JPMorgan Chase, Morgan Stanley, and UBS Group, at least seven investment banks have withdrawn their buy ratings for Nike and switched to "hold".

Intensified Market Competition

Nike's market share is gradually declining in competition with competitors such as Adidas, and its prospects are disappointing. UBS analyst Jay Sole downgraded its rating from "buy" to "hold" neutral and pointed out that Nike's fundamental trend is worse than expected, and the lifestyle business needs significant adjustments.

Share Price and Rating Changes

Last Friday, Nike's stock price plummeted by 20% and closed at $75.37 per share. Both Alex Straton of Morgan Stanley and Jim Duffy of Stifel have downgraded Nike's rating from "buy" to "hold". Many analysts have expressed a lack of confidence in Nike's future growth.

Analysts Divided

Raymond James's Rick Patel lacks confidence in the potential for Nike's revenue growth, while Barclays Bank's Adrienne Yih believes that this rating adjustment has raised more uncertainty about the long-term health of the Nike brand and stated that he will maintain a wait-and-see attitude until the company's strategy clearly drives sales growth.

Although most analysts have downgraded Nike to "hold" or "sell", there are still some analysts who insist on giving Nike a "buy" rating. Bank of America analyst Lorraine Hutchinson believes that the forecast adjustment is greater than expected, and if innovation can quickly offset the challenges of lifestyle business, these forecasts can be proven conservative.