Wells Fargo Cuts NIKE Price Target to $55

Analysts cite China sales slump and margin pressures as reasons for the downgrade.

Apr. 1, 2026 at 4:22pm

Got story updates? Submit your updates here. ›

Wells Fargo & Company has lowered its price target for NIKE (NYSE: NKE) from $65 to $55, citing concerns over the company's recent performance. The footwear giant reported a significant sales decline in Greater China and margin pressures due to factors like tariff costs and promotional activity.

Why it matters

NIKE's struggles in China and margin pressures are worrying signs for the company, as the Chinese market and profitability have been key drivers of its growth in recent years. The downgrade highlights broader risks facing the brand, including geopolitical tensions and a potential slowdown in consumer spending.

The details

In a research note, Wells Fargo analysts said NIKE's Q4 revenue guidance of a 2-4% decline, versus Wall Street's expectation of around 2% growth, was a key factor behind the price target cut. The company also reported a roughly 20% sales decline in Greater China, a market it has heavily invested in, and flagged that regaining share there will take time. Additionally, NIKE's gross and operating profit margins declined year-over-year due to factors like tariff-driven costs, promotional activity, and inventory clean-up.

  • NIKE reported its Q3 2023 results on March 31, 2026.

The players

Wells Fargo & Company

An American multinational financial services company that provides various banking, investment, and mortgage products and services.

NIKE, Inc.

A global designer, marketer, and distributor of athletic footwear, apparel, equipment, and accessories, headquartered near Beaverton, Oregon.

Got photos? Submit your photos here. ›

The takeaway

NIKE's struggles in China and margin pressures are concerning for the company, as these have been key growth drivers in recent years. The Wells Fargo downgrade highlights broader risks facing the brand, including geopolitical tensions and a potential slowdown in consumer spending, which could further impact the company's performance in the near term.