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Nike downgraded to sell on sales decline and weak profit outlook for FY2027.

Analyst Insights
05 Oct 2026
Seeking Alpha
View Source
Bearish
Nike downgraded to sell on sales decline and weak profit outlook for FY2027.

Nike has been downgraded to a sell rating due to accelerating declines in sales and a challenging risk/reward profile. The company's FY2027 guidance forecasts high-single-digit revenue declines and a 40% drop in adjusted earnings per share, indicating significant margin pressures ahead. Despite strategic efforts like consolidating operations in China and supply chain improvements, demand remains weak and recovery uncertain. Nike's current premium valuation is seen as unjustified given these challenges.

Nike's market cap stands at $50.25 billion as of Oct 06, 2026, 08:01 WIB, with a dividend yield of 4.84%. The stock price on Pluang is USD 33.98, showing a modest 0.32% increase over the past day. Despite the recent downgrade and challenging outlook, Pluang's order activity is fairly balanced with 53% Sell and 47% Buy, reflecting mixed investor sentiment.

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