Nike Downgraded by Wells Fargo, as Weight-Loss Drugs Shift Consumer Spending

Wells Fargo downgraded Nike (NKE) to Equal Weight from Overweight. Analysts reduced the price target for the stock to $45 from $55. Nike shares have already declined approximately 30% year-to-date.

The bank cited the growing popularity of GLP-1 weight-loss drugs as a primary factor for the downgrade. Analysts believe this trend shifts consumer spending away from athletic apparel and toward traditional clothing as body types change.

This shift challenges the wellness-through-exercise narrative that historically supported the athletic wear industry.