Wells Fargo is moving to the sidelines when it comes to Nike . The bank downgraded shares of the athletic apparel manufacturer to equal weight from overweight. Analyst Ik Boruchow accompanied the move by reducing his price target to $55 from $75. Shares of Nike have tumbled 24% in 2025. Boruchow’s updated price target implies that the stock could shed 4% from its Tuesday closing price. Shares were off nearly 1% in premarket trading Wednesday. NKE 1Y mountain NKE 1Y chart As a catalyst for the change, the analyst pointed to new tariff headwinds and a potential looming “mild” recession. These factors could contribute material risk to Nike’s earnings and put the company in a poor position to manage near-term headwinds. Nike stood out as one of the “most concerning” stocks when pricing these new risks into the model, he added. “Downgrading to EW (from OW) given the turnaround is simply taking longer than hoped, while today’s macro concerns will likely kick the can even further out,” the analyst wrote. “The environment is simply not conducive to what CEO Hill needs to do to fix the model, and without any real valuation support we don’t think the stock can work.” Boruchow’s bull case sees shares of Nike rising to $70 each, implying a 22% upside. On the other hand, his bear case sees the stock tumbling to $30, representing downside of 48%.
