KeyBanc Trims Nike (NKE) Target but Sees Early Signs of Stabilization

NIKE, Inc. (NYSE:NKE) is included among the 12 Best Dow Jones Dividend Stocks to Buy According to Hedge Funds.

On January 22, KeyBanc trimmed its price target on NIKE, Inc. (NYSE:NKE) to $75 from $90. However, the firm maintained an Overweight rating. The firm said there are early hints that the business is stabilizing, but warned that real progress will not happen overnight.

A few days later, a January 26 Reuters report added more context. Nike is laying off about 775 employees as it works to lift profitability and push more aggressively into automation. A source told Reuters the bulk of the cuts will come from distribution centers in Tennessee and Mississippi, home to some of Nike’s largest warehouses.

The company has been under steady pressure as it tries to recover lost market share to rivals. This is not the first round of job cuts tied to that reset. In August, Nike reduced its corporate workforce by just under 1% as part of turnaround efforts led by CEO Elliott Hill, who took the helm in 2024. Earlier, in February 2024, the company said it would eliminate roughly 2% of its workforce, more than 1,600 roles.

In a statement to Reuters, Nike said it is “taking steps to strengthen and streamline our operations so we can move faster, (and) operate with greater discipline.” The company noted that the latest reductions will largely affect U.S. distribution operations. As of May 2025, Nike employed about 77,800 people worldwide, including retail and part-time staff, according to its most recent annual report.

NIKE, Inc. (NYSE:NKE) designs, markets, and sells athletic footwear, apparel, equipment, accessories, and related services across global sports and fitness markets.

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