JPMorgan Cuts Nike to Underweight, Sees Pain Into 2028

JPMorgan downgraded Nike to underweight from neutral on Tuesday and cut its price target to $40 from $47, arguing the sportswear giant's turnaround will take longer than the market expects.

The bank said Nike's 'Win Now' decisions made in 2026 — aggressive investments and inventory actions aimed at reigniting growth — will weigh on profits into fiscal 2028, keeping earnings under pressure even if revenue stabilizes.

The call adds to a difficult stretch for the stock, which has lagged the broader market's record-setting rally. Investors will look to Nike's next earnings report for evidence that demand in North America and China is stabilizing.