Street View: Analysts keep faith in Nike turnaround despite Q4 revenue setback

Nike NKE.N on Thursday forecast a steeper drop in fourth-quarter revenue than analysts had expected, striking a cautious tone as it works to rekindle interest among consumers who have defected to trendier rivals.

Earlier on Thursday, Nike reported third-quarter results that beat expectations.

Shares down 5.7% at $67.83 premarket.

At least seven brokerages cut PT.

LONG WAY TO GO

RBC Capital Markets ("sector-perform," PT: $66) says earnings beat was timing-related that would unwind in the next quarter as per company guidance

Piper Sandler ("overweight," PT: $90) likes the co's actions with the turnaround; says the more pain NKE takes now, the more gain there will be in FY26 and beyond

Oppenheimer ("outperform") says that while NKE results continue to be weak, brokerage believes underlying trends at the company are starting to improve and it may be set for a rebound in coming quarters

Barclays ("equal weight," PT: $70) says NKE is emerging from deep hole from prior management due to excess inventory, lack of innovation, and brand equity, and expects it will take multiple seasons to correct

BMO Capital Markets ("outperform," PT: $92) says management suggested the turnaround will take more time and believes NKE is working to return to what made it special