Nike Stock Plummets: Turnaround Plan Delayed

Nike stock has experienced a significant decline in 2026, leaving investors seeking evidence of CEO Elliott Hill's turnaround plan. As of August 4, 2026, JPMorgan has downgraded Nike's stock to an 'Underweight' rating, a move that typically signals clients to reduce their holdings. Analyst Matthew Boss has also cut the price target to $40, projecting an approximate 6% loss from the previous day's closing price.

Boss's analysis suggests that the financial repercussions of Nike's strategic decisions, particularly its "Win Now" initiative launched in late 2024, will negatively affect earnings for an extended period. These impacts are expected to linger on the profit and loss statement through the latter half of fiscal 2027 and into fiscal 2028. JPMorgan now forecasts earnings approximately 20% below consensus expectations for Nike.

This re-evaluation by JPMorgan positions fiscal 2028 as a year of stabilization for Nike rather than growth. The firm has set a December 2027 target price of $40, based on a multiple of its projected 2028 earnings. This outlook could diminish the stock's appeal for investors anticipating a strong rebound in fiscal 2028.