Bank of America downgraded Nike to Underperform from Neutral and slashed its price target to $30 from $47, implying roughly 17% downside from Nike's latest close. Analyst Lorraine Hutchinson said Nike's turnaround is taking longer to materialize as weakness in its larger lifestyle categories outweighs progress from newer product launches. BofA also cut its fiscal 2027 and 2028 earnings-per-share estimates by 11% and 12%, respectively, to $1.43 and $1.87, and now expects negative sales growth through fiscal 2027, effectively pushing a meaningful top-line recovery into fiscal 2028. The bank flagged North American wholesale as a major concern, saying recent wholesale growth has not been matched by strong sell-through at retail, while Greater China sales fell 17% in the latest quarter and a planned reduction in distribution through e-commerce partners could create additional near-term weakness. BofA also noted that its fiscal 2027 estimates imply a payout ratio of roughly 107%, meaning projected earnings would not fully cover the dividend.
Nike IncBofA downgraded Nike to Underperform and cut its price target to $30 from $47, slashing FY27/FY28 EPS estimates.
Bank of America Corp
