Bank of America Downgrades Nike Amid Prolonged Turnaround Concerns

Nike Inc.'s (NKE) recent performance has raised concerns among investors and analysts. Bank of America downgraded Nike from Neutral to Underperform, citing a slower-than-expected turnaround. The firm lowered its price target from $47 to $30 and trimmed fiscal 2027 and 2028 EPS estimates by 11% and 12%, respectively.

The downgrade reflects concerns over negative sales growth through fiscal 2027, driven primarily by a disconnect between North American wholesale growth and sell-through rates. However, Nike's dividend yield stands at a robust 4.59%, supported by a dividend growth rate of 7.1% over the past three years.

The company holds a GF Score™ of 64/100, indicating moderate overall financial health with particular strengths in profitability and financial stability. Insider activity shows net buying over the last 12 months, with insiders purchasing $9.2 million worth of shares against $8.1 million sold.