Nike Shares Tumble on $40 JPMorgan Target, Citing Turnaround Risks

JPMorgan downgraded Nike (NKE) to Underweight from Neutral.

Analyst Matthew Boss lowered the price target to $40 from $47.

The firm expects the Win Now turnaround plan to drag on profitability through fiscal year 2028.

JPMorgan’s earnings estimates sit approximately 20% below the market consensus.

The digital marketplace overhaul in China creates a revenue headwind exceeding $1 billion.

U.S. store closures further impact the firm's outlook.

Nike shares fell more than 2% following the report.