Nike Faces Higher Bar as Stifel Cuts Target Ahead of October 1 Q1 Report

Insider Monkey··USCN·Read original
3▲0 ▼1Impact / 5
Summary · why it matters

Nike heads into its October 1 fiscal 2027 first-quarter report with Wall Street focused on whether improving margins and performance categories can offset weak demand in the lifestyle business. Stifel cut its price target to $40 from $45 on September 21 while keeping a Hold rating, citing a more promotional Western marketplace and a tougher fiscal fourth-quarter gross-margin comparison, and lowered its FY2027 and FY2028 adjusted EPS estimates by $0.20 each, to $1.70 and $2.05. On the positive side, Performance grew mid-single digits in fiscal 2026, Running posted five consecutive quarters of double-digit growth and added roughly $1 billion in revenue, and North American wholesale revenue grew 10% in the fourth quarter; Stifel estimates the World Cup could add about $300 million to Q1 revenue. Against that, Sportswear declined double digits in Q4 and management expects Sportswear and Jordan streetwear to remain negative through FY2027, with those businesses representing roughly half of revenue, while Hoops Classics, about 18% of revenue, continues to contract and Greater China revenue fell 17% in Q4. UBS expects a Q1 EPS shortfall of five cents and sees risk of a broader FY2027 reset at the November Investor Day, while BMO expects Nike to reset its FY2027 outlook when it reports; the stock traded at a 20.66 forward P/E as of September 21 versus 10.46 for Deckers Outdoor, 14.27 for On Holding and 11.47 for Adidas, and short interest climbed to 75.59 million shares as of August 31 from 57.37 million a month earlier, or 7.92% of the float.

Impact on assets 7

Consumer Discretionary▼ · 4 stocks
Nike Inc
NKE
▼ NegativeCapitalrelevance

Stifel cut its price target to $40 from $45 and lowered FY2027/FY2028 EPS estimates ahead of Nike's Q1 report, with UBS and BMO also flagging EPS shortfall and outlook-reset risk.

Financials▲ · 3 stocks
Stifel Financial Corporation
SF
± MixedCapitalrelevance

Stifel is the analyst firm that cut Nike's price target and EPS estimates, but the article reports its action as context rather than news about Stifel itself.

© 2026 MarketIVNews