Nike Inc (NYSE:NKE) shares are retreating Tuesday after JPMorgan took a more bearish stance on the athletic apparel giant.
- Nike stock is showing weakness. Why is NKE stock retreating?
JPMorgan Moves to Underweight and Slashes Its Price Target
Analyst Matthew Boss at JPMorgan lowered his rating on Nike to Underweight from Neutral and pulled his price objective down to $40 from $47, making the case that current consensus earnings estimates are materially too optimistic.
Boss said his revised forecasts trail the Street by roughly 20%, a gap he attributes to a broader misreading of how deeply and how long the “Win Now” turnaround will weigh on profitability before it begins generating tangible returns.
“Win Now,” which the company unveiled in December 2024, organized itself around five objectives: returning the organization’s culture to its sporting roots, forging stronger emotional bonds with consumers through brand storytelling, pushing the pace of product innovation, broadening the marketplace footprint and cultivating more geographically specific customer relationships.
The piece of the strategy that Boss flagged as carrying the most significant near-term financial risk is Nike’s plan to consolidate its Chinese digital presence around official flagship stores on Tmall, JD.com and Douyin beginning in January 2027, while phasing out the network of partner-operated online storefronts that currently sell Nike products alongside those channels.
Nike’s Chart is Still an Overhang
Nike remains under broad technical pressure. The stock is 1.9% below its 20‑day SMA, 3.4% below its 50‑day SMA, 6.7% below its 100‑day SMA, and 22.7% below its 200‑day SMA, keeping the longer‑term trend pointed lower. The 20‑day SMA sitting under the 50‑day SMA adds a bearish short‑term tilt, and the November 2025 death cross still frames the bigger downtrend.
Momentum isn’t signaling a classic washout. RSI at 45.79 is neutral, suggesting sellers aren’t exhausted even with price hovering near its 52‑week low zone. In practical terms, the stock may be cheap, but it isn’t flashing an obvious snapback setup, which keeps the burden on buyers.
The near‑term levels are straightforward:
- Key resistance: $47.00 — a psychological overhead zone where past rebounds have stalled and sellers tend to show up.
- Key support: $40.50 — the recent low area buyers defended. If it breaks, then $40.00, which is the 52‑week low, comes into play quickly.
NKE Shares Are Dipping
NKE Price Action: Nike shares were down 2.23% at $41.69 at the time of publication on Tuesday. The stock is near its 52-week low of $40.00, according to Benzinga Pro.
Image: slvn_an/SHutterstock
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