Truist downgrades Nike to 'Sell'... maintains $29 price target

Truist Securities downgraded Nike ($NKE) to Sell from Hold on February 5 while keeping its $29 price target, with analyst Joseph Civello arguing the stock's recent rally reflects sector rotation rather than improving fundamentals. Truist noted Nike shares gained 19% over the past month while the S&P 500 was roughly flat over the same period. Civello also flagged valuation, noting Nike trades at about 27 times forward two-year earnings versus roughly 15 times for comparable companies. The downgrade matters because it challenges the durability of Nike's recent outperformance at a time when its underlying business metrics have yet to show clear improvement. Investors will watch whether the stock can hold its gains without fundamental support and whether upcoming earnings or guidance validate Truist's more cautious stance.