Nike (NYSE:NKE) shares were cut to Sell from Hold at Williams trading on Monday. The firm also lowered its price target for the stock to $85 from $92 per share.
Analysts at the firm said Nike's strength continues to diminish, with the company "losing its luster" and not doing enough to shine.
"Nike is no longer as 'relentlessly self-critical' as it was in its heyday," stressed Williams Trading. "Today, it appears as if consultants, rather than Nike experts, are leading strategy decisions, senior leaders are too dogmatic, and do not welcome all opinions."
Furthermore, they believe financial goals are driving merchandising decisions and that many of those driving the direction of the company are "using spreadsheet rather than the educated gut with strict parameters that led Nike to become a $50B company."
"Nike will report its 3Q24 earnings on Thursday, March 21st AMC. We foresee a slight miss, and FY24 guidance will be cut once again," added the firm.
Analysts believe NKE does not deserve its historic multiple as many of the franchises, whose successes contributed to that multiple, are losing their luster.
Overall, Williams Trading believes the aforementioned issues will drive short—and long-term challenges to the company's sales and margin growth.