Nike (NKE) shares fell on June 10 after RBC Capital Markets downgraded the stock to Sector Perform from Outperform. The bank lowered its price target to $50 from $70.
RBC analyst Piral Dadhania warned that Nike’s turnaround under CEO Elliott Hill is progressing slower than expected. The firm projects no sustained revenue growth for the remainder of 2026. Analysts cited a lack of new growth drivers and ongoing inventory cleanup as primary concerns.
Nike continues to lose ground to competitors including Hoka, New Balance, Lululemon, and Alo Yoga. These brands are gaining market share in core footwear and apparel categories. Nike’s stock has declined since Hill’s October 2024 appointment, while rival Adidas has seen substantial gains.