Nike's (NKE) fiscal Q3 results confirmed the "too early to buy thesis," as much of the beat is timing related that should unwind in the next quarter based on the company's guidance, RBC said in a note Friday.
"Nike is taking the right steps to clear marketplace inventory and accelerate performance based new product flow," the firm said. "However, management messaging suggests spillover into 1H26 which we believe is consistent with our existing view that it remains too early to be more positive on Nike."
RBC said it expects to see evidence that the strategy is working in late 2025 to early 2026.
The firm said that after the most recent quarter's results, it reduced its 2025 earnings per share estimates by 5% and 2026 revenue by 1% and EPS by 4%.
RBC cut its price target on Nike to $66 from $67 and maintained its sector perform rating.
Nike shares were down over 7% in premarket activity Friday.
Price: 66.70, Change: -5.16, Percent Change: -7.18
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