What Analysts Think About Nike Stock Ahead of Earnings

Nike (NKE) will report first-quarter results after the bell on Tuesday, and analysts expect sales and profit to decline from a year ago – but the stock expects little upside.

The consensus price target for the sportswear company is $89.65, less than 2% higher than Monday's closing price, according to Visible Alpha.

According to Visible Alpha, nine of the 20 companies surveyed with current ratings gave Nike a “buy” rating. Another nine have a “hold” rating and two have a “sell” rating.

Net income is expected to fall by nearly half year-on-year to about $775 million, compared with $1.45 billion a year ago. The company is expected to report higher expenses due to increased advertising during the Olympics held during the quarter and focus on new product development.

The case for a bullish trend, analysts at Deutsche Bank say, is that this quarter is likely to mark the bottom of Nike's sales decline before a recovery occurs, especially if the company takes on a new CEO in October. Here's what you need to know ahead of Nike's earnings report.

Shares of Nike are down about 20% this year.