BofA Securities downgraded Nike to Underperform from Neutral and cut its price target to $30 from $47, citing downside risk to both earnings estimates and valuation. The firm said Nike's innovation push is still being overshadowed by pressure on its classics business, with category and macro headwinds building. BofA cut its fiscal 2027 and 2028 EPS estimates by 11% and 12%, respectively, and now expects negative sales growth through fiscal 2027, dropping its earlier call for a spring inflection, with its fiscal 2027 estimate sitting 14% below consensus. The $30 target reflects a 16x multiple, down from 22x and in line with peers, and with Nike's dividend payout ratio above 100%, the bank also lowered its income rating, signaling it expects the dividend to stay flat or fall. The call lands ahead of Nike's fiscal first-quarter report on Oct. 1, where analysts expect revenue to fall 2.4% to $11.4 billion, while BTIG kept a Buy rating with a $55 target and Stifel and UBS trimmed their targets to $40 and $42, respectively.
Nike IncBofA downgraded Nike to Underperform and cut its price target to $30 from $47, citing downside risk to earnings and valuation.
