The wait for a turnaround in Nike Inc's (NKE  ) business is not over, as analysts expect trends to remain challenging in the near term.

The Nike Analyst: Analyst Tom Nikic maintained a Buy rating, while reducing the price target from $75 to $66.

The Nike Thesis: While there is modest upside to the company's fourth-quarter earnings, it is due to conservative guidance, Nikic said in the note.

Street expectations for Nike's performance in fiscal 2026 appear "too high," he added.

Tariffs could lower the company's gross margin by 200-250 basis points, translating to a negative impact of 50 cents per share to earnings, the analyst stated.

"While we believe that last year's change in leadership will eventually lead to brighter days for Nike, the company still has a lot of work to do to reignite brand heat and clean up the marketplace," he further wrote.

NKE Price Action: Shares of Nike had risen by 0.53% to $60.32 at the time of publication on Wednesday.