Nike (NYSE:NKE) is facing a critical evaluation from top Street analyst Sam Poser of Williams Trading. Poser, ranked in the top 3% of Street stock pros, believes that Nike is losing its appeal and failing to make significant improvements in its positioning. According to Poser, Nike’s strength is diminishing, and the company’s approach is no longer as self-critical as it once was. He criticizes the leadership for being too dogmatic and not welcoming diverse opinions, leading to strategic decisions being driven by financial goals rather than brand development.

Poser’s assessment comes ahead of Nike’s fiscal Q3 earnings, where he expects a slight miss and a cut in FY24 guidance. He points out immediate and long-term challenges in growing sales and margins, including underperforming new shoe releases, prioritizing sales growth over brand equity, and a lack of new commercially viable products. Additionally, he warns of overconfidence in new styles like the upcoming AirMax DN.

As a result of his evaluation, Poser downgraded Nike from Hold to Sell and slashed the price target from $92 to $85, implying a downside of ~15% from current levels.

While Poser holds a bearish stance on NKE, the stock maintains a consensus rating of 18 Buys and 9 Holds, with an average target price of $121.59, indicating potential one-year returns of ~22%.