NKE
The hype got benched
Nike’s World Cup glow-up just ran into a very un-fun reality check. RBC Capital Markets chopped its price target on NKE to $50 from $70, arguing the company’s recovery is taking longer than the market hoped and that the payoff from CEO Elliott Hill’s turnaround plan may not really hit until 2027.
What RBC is really saying
The analyst team says Nike still has the brand crown, but the engine under the hood isn’t revving fast enough. They’re looking for stronger consumer demand, and instead they’re seeing slower-than-expected revenue growth, lower profitability forecasts, and a risk that Nike keeps losing share while rivals keep sprinting.
A few of the zingers in the note:
- projected revenue growth of just 3%, below the industry’s 6% average
- profitability forecasts cut for 2027 and 2028
- the old $70 target was built on faster 2026 growth tied to World Cup buzz
The competition isn’t exactly waiting around
RBC also pointed to the folks nibbling at Nike’s lunch. In running shoes, Hoka and New Balance are making noise. In premium women’s apparel, Vuori, Alo Yoga, and Lululemon are all looking stronger. Translation: Nike may still be the biggest kid on the playground, but everybody else is getting more comfortable stealing the ball.
Big picture
The World Cup is still a tailwind, sure. But for investors, this note is basically a reminder that sponsorships and sports fever don’t fix everything. Nike still needs products people actually want to buy, and Wall Street is getting less patient about waiting for the comeback montage to kick in.