RBC Capital Markets downgraded Nike Inc. to Sector Perform from Outperform and reduced its price target to $50 from $70, citing slower-than-expected revenue growth and a delayed turnaround. Analyst Piral Dadhania, leading the coverage, revised the outlook just ahead of the FIFA World Cup 2026, a event Nike had heavily banked on for a sales recovery. The new rating reflects a neutral stance, with the firm warning that benefits from CEO Elliot Hill's strategy will likely materialize only in 2027, rather than 2026 as previously assumed.

The firm cut its profitability forecasts for Nike by 9% for 2027 and 13% for 2028, leaving estimates 2% below Wall Street expectations. RBC projects Nike's revenue growth to reach just 3%, significantly trailing the industry average of 6%. The analysts highlighted that generating stronger consumer demand remains the company's biggest challenge, noting that while Nike leads in lifestyle footwear, it lags behind competitors like Hoka and New Balance in running shoes, and Vuori, Alo Yoga, and Lululemon in premium women's apparel.

Nike's turnaround efforts have faced headwinds, including a 4% decline in Nike Direct revenues despite a third-quarter revenue beat of $11.28 billion against estimates of $11.24 billion. The company has also undergone significant restructuring, including laying off 775 employees at U.S. distribution centers in early 2026 and cutting 1,000 corporate jobs the prior summer. While Nike is reportedly in talks to replace Adidas AG as the official match ball supplier for UEFA men's club competitions from 2027 to 2031, analysts caution that sponsorship deals alone are insufficient without meaningful product innovation.

On a year-to-date basis, Nike shares declined 30.53%. The stock closed at $43.96 on Wednesday, down 1.55%.

UBS analyst Jay Sole has maintained a Neutral rating on Nike (NYSE: NKE) while lowering the price target to $50 from $54. The revised target suggests a tempered outlook for the sportswear giant's stock performance.

The decision to adjust the price target comes as the firm evaluates Nike's current market position and future growth prospects. Despite the lower target, the Neutral rating indicates that the analyst does not see a significant near-term catalyst for the stock to outperform or underperform the market.

Investors will be watching for further updates from Nike regarding its strategic initiatives and financial performance to gauge the validity of this revised price target.