Don’t expect major gains from Nike as its corporate turnaround strategy has so far failed to bear much fruit, according to HSBC. The investment bank’s research arm downgraded the apparel giant to hold from buy. It also slashed its price target on shares to $48 from $90, implying 12.6% upside from Friday’s close. “Nike’s turnaround thesis has gone from ‘not if, but when’ to a ‘show me’ story with no short-term catalysts,” analyst Akshay Gupta said in a note to clients. In 2024, Nike announced a corporate strategy shift aimed at revitalizing its brand by embracing product innovation and new leadership. But investors’ faith in the company’s ability to realize that vision has faded. Nike stock is down 33% in the year to date as investors limit exposure to President Donald Trump’s tariffs and a potential hike in shipping costs linked to the Iran war. Amid those macroeconomic conditions, Nike issued last month a lackluster sales outlook , quickly leading to a double-digit decline in its stock. NKE YTD mountain Nike stock is down 33% since the beginning of the year. The firm’s underwhelming forecast prompted several analysts on Wall Street to lower their Nike rating. Piper Sandler downgraded the stock last week . Earlier this month, Goldman Sachs, Bank of America and other top shops also lowered their ratings on Nike . Gupta noted that the Iran war could add even more downward pressure to shares. “Although a rise in inflation linked to the Middle East conflict looks manageable (for now) for these companies, an extended period of conflict could put earnings under pressure,” Gupta wrote. The analyst added that a lack of clarity around the U.S.’ trade war with China and other foreign partners also continues to weigh on the stock. “US tariffs weigh on margins as companies are unable to pass on cost increases to consumers but continue to pay tariffs despite a lack of clarity around their status,” Gupta wrote. Nike also faces intensifying competition from upstarts like Hoka and resurgent rivals such as Adidas in the footwear category.