Nike Stock Sinks to Near 12-Year Low Amid China Competition

Nike's stock price has dropped to near its 12-year low of $35.75, down 44% this year.

The latest warning came from Bank of America, which cut Nike's rating to Underperform and slashed its price target to $30 from $47.

Analyst Lorraine Hutchinson wrote that the bank is less confident in Nike's recovery, citing soft sportswear demand and intense competition in China.

Nike CEO Elliott Hill has been trying to restore the company's authority in running and performance categories through product innovation.

However, analysts such as BTIG's Robert Drbul remain bullish on Nike's prospects, citing the importance of product renewal for share price recovery.