Nike Stock Takes Hit as BofA Cuts Price Target to $30

Nike's (NKE) stock price has dropped by about 2% in premarket trading following Bank of America Corporation's (BofA) downgrade to 'Underperform' from 'Neutral'. The bank also cut Nike's price target to $30 from $47, citing a longer-than-expected turnaround and weak earnings expectations. BofA analyst Lorraine Hutchinson lowered Nike's fiscal 2027 and fiscal 2028 earnings-per-share (EPS) estimates by 11% and 12%, respectively.

The move comes as Oppenheimer and Barclays also lowered their price targets for Nike this week, keeping pressure ahead of its earnings report due on October 1. According to Visible Alpha consensus, BofA's FY27 EPS forecast for Nike is 14% below the expected figure. The company expects revenue to decline in the low- to mid-single digits through the first two quarters of fiscal 2027.

Nike has been struggling with declining sales and revenue, with its fiscal fourth-quarter revenue falling 1% year-over-year to $11.0 billion. Greater China revenue also fell 17% on a reported basis. The company's upcoming fiscal first-quarter results will provide the next update on its turnaround.