RBC Lowers NIKE (NKE) Price Target to $65, Cites Inventory Concerns

On May 20, RBC Capital analyst Piral Dadhania lowered his price target for NIKE, Inc. (NYSE:NKE) from $66 to $65, while maintaining a Sector Perform rating on the company’s shares. The adjustment was made in light of the athletic apparel giant’s ongoing efforts to manage excess inventory and prepare for the upcoming Autumn/Winter 2025 Running product launch.

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According to Dadhania, NIKE, Inc. (NYSE:NKE) is at a crucial point in its history—the “heavy lifting stage” of inventory clean-up. This assessment is supported by the company’s strides in creating a more efficient executive governance structure, as evidenced by the recent changes to its Senior Leadership Team.

That said, the analyst remained cautious about the company’s risk/reward profile in anticipation of NIKE’s fiscal year 2025 earnings. In that regard, Dadhania noted a number of worries, including exposure to tariff-related headwinds, the possible drag from ongoing clearance efforts, and general macroeconomic uncertainty. RBC Capital predicts that a more favorable situation might materialize in the second half of fiscal year 2026, after inventory levels stabilize and revenue growth starts to pick up speed.

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