Nike's stock price continues to face pressure, closing at $35.78 on Wednesday, with another 1.2% decline in a single day. Compared to its 52-week high of $76.97, the stock has fallen by approximately 53% cumulatively. Since the beginning of this year, the stock has lost more than 40%, and concerns about its recovery pace are still increasing in the market.

Morgan Stanley targets $31 lower

Wall Street's views on Nike's future trend are not consistent. Morgan Stanley recently set a target price of $31, which implies there is still room for further decline from the current level. The firm believes that market expectations for Nike's recovery, especially in the Chinese market, may still be overly optimistic.

Judging from recent trading performance, investors' patience with the company's fundamental recovery is waning. Even as management continues to send signals of adjustments, the market is more concerned about whether there will be clearer signs of operational improvement in the coming quarters.

Recovery progress slower than expected

Nike's CEO, Elliott Hill, is attempting to revitalize the company's growth by focusing on its sports positioning, product innovation, and stronger relationships with wholesale channels. However, based on the stock price performance, this adjustment has not yet translated into sufficient market confidence.

The article mentions that Nike is currently under multiple pressures. In addition to the company's own slow recovery, the external market environment is also tightening. As the yield on U.S. Treasury bonds rises, some funds are shifting towards cash assets, and the market has become more cautious about consumer and technology stocks with higher valuations.

Financial reports will test the stop-loss signal.

Nike's upcoming financial report will become an important window for the market to assess whether the company is stabilizing. Investors will focus on indicators such as sales in China, profit margins, the impact of tariffs, demand from digital channels, and growth in the wholesale business.

• Has there been any improvement in sales in China?
• Can profit margins stop declining and stabilize?
• Changes in Wholesale and Digital Channel Demands

If these key indicators do not improve, market expectations for Nike's recovery timeline may continue to be delayed, and the pressure on the stock price is also unlikely to ease significantly.