Nike Stock Slumps After BofA Downgrade Cuts Price Target to $30

Nike Inc (NKE) stock has continued its downward trend after BofA downgraded it to Underperform and cut its price target to $30 from $47. The analysts now expect negative sales growth through fiscal 2027, with recovery pushed toward fiscal 2028.

The bear case for Nike is that the brand has lost momentum due to weak classic styles, disappointing new launches, excess China inventory, and softer sports demand. Earnings quality remains fragile, with consensus expecting FY2027 EPS to fall to $1.69 from $2.10 in FY2026.

BofA also noted that the dividend payout ratio exceeds 100%, limiting financial flexibility while earnings remain pressured. However, the valuation is materially lower, with FinQL's fair-value model estimating a $54.47 price target, representing 51.3% upside from September 25's closing price.

The bull case for Nike remains intact, citing its scale, brand recognition, and early progress in North American wholesale. A cleaner inventory position, better product innovation, tariff relief, or China stabilization could produce significant operating leverage.