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Nike Share Price Falls After Cutting FY22 Revenue, Analysts Lower Price Targets

Updated: 24 Sep 2021

Nike (NYSE: NKE) shares are declining premarket Friday after the company reported its earnings, lowering its fiscal 2022 outlook.

Nike shares are down 4.8% at $151.90 premarket after the footwear giant said supply chain congestion, transit times and labour shortages have impacted Q1. 

The company cut its FY 2022 revenue view to mid-single digits from low double digits. Nike also sees Q2 revenue flat to down low single digits. The consensus was $12.57 billion.

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Nike's revenue for Q1 missed expectations, coming in at $12.25 billion, below the $12.46 billion expected, while its earnings per share were above the expected $1.11 at $1.16. Earnings were boosted by the sale of more goods to consumers at full price.

The earnings report has seen analysts at Deutsche Bank and Morgan Stanley cut their price targets for Nike.

Deutsche Bank analyst Gabriella Carbone lowered the price target on Nike to $166 from $171 , keeping a Buy rating. Carbone said Nike's Q1 report slightly missed expectations, impacted by inventory constraints rather than a lack of consumer demand. However, she told investors the Nike brand “is as healthy as ever.”

Morgan Stanley analyst Kimberly Greenberger lowered the firm's price target on Nike from $221 to $201, keeping an Overweight rating. The price target was reduced due to management cutting FY22 guidance. However, similarly to Carbone, Greenberger said the underlying demand for Nike products appears robust and she remains “bullish despite the cut.” 

Elsewhere, Piper Sandler analyst Erinn Murphy reiterated an Overweight rating and $174 price target, while Citi analyst Paul Lejuez kept a Neutral rating on Nike with a $170 price target.

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