NKE Stock Heads For Another Month In The Red: Jefferies Bets On Nike's Recovery, Sees A Q1 Earnings Beat

• Jefferies expects Nike to post better-than-expected Q1 results, forecasting $11.5 billion in revenue and $0.48 EPS.
• Jefferies sees over 100% upside in Nike stock. 
• Nike’s stock has fallen more than 77% from its 2021 peak and has struggled with weaker lifestyle demand. 

Nike Inc. (NKE) is heading for a second straight monthly decline, but Jefferies sees a potential turnaround ahead. Analyst Randal Konik expects fiscal first-quarter (Q1) 2027 revenue and earnings to top Wall Street estimates, while November’s investor day could provide another catalyst as Nike works to rebuild momentum. 

Nike stock inched 0.1% lower in Tuesday’s premarket. The stock is headed for a second straight month of losses, after a more than 5% decline in September. 

Jefferies Sees Nike Beating Q1 Expectations 

According to Jefferies, Nike could deliver a stronger-than-expected start to its fiscal year as investors look for signs that the athleticwear giant’s turnaround is gaining traction.

Analyst Konik expects Nike to generate $11.5 billion in Q1 revenue and $0.48 per share in earnings. Those estimates sit above Wall Street expectations of $11.3 billion in sales and $0.44 in earnings per share, according to Fiscal.ai data. 

Nike will report Q1 earnings on Oct. 1. The firm believes the company’s progress could help lift confidence in its recovery after a period of weaker performance.

Jefferies also pointed to Nike’s investor day scheduled for November as an important event for shareholders. The analyst expects the company’s longer-term outlook and guidance framework to provide a near-term catalyst for the stock. Jefferies maintained its Buy rating on Nike and kept its $75 price target unchanged, implying a 106% upside to the stock’s last closing price. 

Nike Stock Plunges As Turnaround Challenges Mount 

Nike is going through a difficult period, with its stock down more than 77% from its November 2021 peak. The drop has wiped out over $224 billion in market value and brought the stock’s valuation to levels not seen since 2014. 

Nike’s stock performed strongly after 2016, helped by high demand for casual sportswear during the pandemic, growing online sales and a strong market. But that momentum has since weakened.

The company has faced years of challenges, including problems with its direct-to-consumer strategy, weaker relationships with retail partners, softer demand for lifestyle products and a long slowdown in China. Nike has also lost its place in the S&P 100 since Sept. 21 

NKE Stock: Retail Stance 

However, on Stocktwits, retail sentiment around the stock improved to ‘bullish’ from ‘neutral’ territory the previous day. 

A user said, “Earnings are coming up, and I’m expecting them to do something, anything, after being kicked out of the $SPY. Let’s tune in and see.” 

NKE stock has crashed 42% year-to-date. 

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