Why Bank of America Is Betting That Nike Stock Will Fall from Here

Sportswear giant Nike (NKE), whose shares have already been under heavy pressure in recent years, tumbled again on Sept. 25 after Bank of America downgraded NKE stock to “Underperform” from “Neutral.” Analyst Lorraine Hutchinson cut the firm's price target for the stock to $30 from $47 per share.

BofA also slashed its fiscal 2027 and 2028 EPS estimates, and now expects negative sales growth through fiscal 2027, pushing the company's sales turnaround into fiscal 2028. The pressure isn’t limited to the top line, either. BofA noted that North American wholesale growth has yet to translate into comparable sell-through, while declines in both new and old styles are putting “forward order books at risk” as retailers become more cautious. At the same time, Greater China sales fell last quarter. Bank of America also flagged growing pressure on earnings, which increasingly depend on gross-margin expansion and cost control, while dividend coverage remains another concern.