Nike is taking steps to refresh its athletic apparel brand, but its progress hasn’t been fast or substantial enough to make the stock a good buy, according to KeyBanc. The bank downgraded Nike to sector weight from overweight. It does not have a price target on shares. “There are signs of progress, but not enough for us to remain optimistic,” analyst Ashley Owens said Thursday in a note to clients. “NKE’s ‘Win Now’ actions have been in place for over a year, and…efforts to rightsize sportswear and pressure in Greater China have not been addressed as quickly as we initially expected, while a reversal in trends in [Europe, the Middle East and Africa] raises additional concerns.” Shares have plunged 36% year to date as the apparel seller’s margins come under pressure due to the Trump administration’s tariff hikes. Nike has also suffered sliding sales in China , or a country that once accounted for a considerable portion of its sales. NKE YTD mountain Shares have fallen 36% in 2026. Roughly two years ago, Nike set out to overhaul its corporate strategy under CEO Elliott Hill. The turnaround plan called for the company to promote more innovation across its product lines and revert to tried-and-true retail strategies, among other moves. “We acknowledge the progress made thus far, but lack visibility into meaningful share appreciation…as cleanup efforts continue,” Owens wrote in her note. KeyBanc’s call falls in line with consensus on Wall Street. Of the 41 analysts covering Nike, 23 have a hold on the stock, LSEG data shows. Evercore ISI also downgraded the stock earlier this week.
