Nike down after JPM downgrades on mounting challenges for Hill's turnaround

NIKE

04/08/2026 15:09

Updates
** Nike NKE.N shares down 3.5% at $41.15 after J.P.Morgan downgrades stock to "underweight" from "neutral"
** J.P.Morgan also cuts price target on the sportswear maker's stock to $40 from $47
** Three out of 42 brokerages currently rate the stock "sell" with a median PT of $47  
** J.P.Morgan says Nike's years-long turnaround effort, launched under CEO Elliott Hill in December 2024, looks likely to be a drag on Nike's results into the first half of 2028
** Nike has said its efforts to revive demand in China and for its brand Converse "will take more time" even as it makes progress in North America
** Brokerage adds Nike's decision to pull online sales rights from some retail partners in China points to an annualized revenue headwind of about $1 billion in the region
** Slowing category growth for global sportswear where Nike is trying to rebuild product and customer ties adds to challenges, J.P.Morgan analysts note
** They also add that robust competition from upstart brands such as On ONON.N and Hoka DECK.N also raises the question of consumer behavior shifting away from brand loyalty to multi-brand trial, which could further eat into Nike's market share
** NKE shares are down ~33% YTD, and have dropped nearly 44% since December 2024

 (Reporting by Rashika Singh in Bengaluru)
 ((Rashika.Singh@thomsonreuters.com;))