Nike slips as BofA turns bearish
NKE•Nike shares fell 2.4% before the bell after BofA Global Research downgraded the stock to “underperform” from “neutral” and cut its price target to $30 from $47. Analysts reportedly expect Nike sales to decline in FY27 as its turnaround takes longer than expected.
1. BofA cuts rating and target
BofA Global Research downgraded Nike to “underperform” from “neutral” and cut its price target to $30 from $47. The new target implied nearly 17% downside to the stock’s last close. Nike shares were down 2.4% at $35.13 before the bell on Friday.
2. Turnaround faces pressure
BofA sees downside risk to earnings estimates and valuation as Nike’s turnaround takes longer than expected. Analysts reportedly now expect sales to decline in FY27. In June, Nike flagged a prolonged turnaround as persistent weakness in China and a cautious outlook overshadowed a modest fiscal fourth-quarter revenue beat.
3. Analyst ratings and performance
Thirteen of 44 brokerages rated the stock “strong buy” or “buy,” 25 rated it “hold,” and six rated it “sell”; the median price target was $44.80. Through Thursday’s close, Nike shares were down 43.5% year to date, compared with a 5% decline in the S&P 500 Consumer Discretionary sector.
