NIKE (NKE) Downgraded at RBC Capial Amid Slow and Narrow Progress

With an annual dividend yield of 3.57%, NIKE, Inc. (NYSE:NKE) is included among the 12 High Yield Fortune 500 Stocks to Buy Now.

NIKE (NKE) Downgraded at RBC Capial Amid Slow and Narrow Progress

NIKE, Inc. (NYSE:NKE) is engaged in the designing, marketing, and distribution of athletic footwear, apparel, equipment, and accessories and services for sports and fitness activities.

On June 10, RBC Capital analyst Piral Dadhania downgraded NIKE, Inc. (NYSE:NKE) from ‘Outperform’ to ‘Sector Perform’, while also cutting the firm’s price target on the stock from $70 to $50. The lowered target still indicates an upside of almost 14% from the current levels.

According to RBC, Nike’s turnaround under the leadership of CEO Elliott Hill is making progress, but it is “slower and narrower” than expected. The firm believes that while the upcoming FIFA World Cup and Nike’s “ongoing clean up activities” provide some support, the company lacks enough growth engines to deliver a sustained improvement in sales trends throughout 2026. As a result, the analyst firm sees a limited upside for the stock in the near term.

After reducing its earnings estimates below consensus, RBC believes that NIKE, Inc. (NYSE:NKE) valuation appears stretched compared to the growth prospects of its peers.

While we acknowledge the risk and potential of NKE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NKE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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