Nike Tumbles as BofA Downgrades Stock Amid Earnings Woes

Nike Inc () is down 48.0% over one year and 43.8% year-to-date, as of September 25, 2026, with a pre-market price of $35.20.

BofA downgraded the stock to Underperform and cut its price target to $30 from $47, citing weak classic styles, disappointing new launches, excess China inventory, and softer sports demand.

The bear case against Nike is that earnings quality remains fragile, with consensus expecting FY2027 EPS to fall to $1.69, from $2.10 in FY2026.

However, some analysts believe valuation is materially lower, with a trailing P/E of 17.2x and a forward P/E of 21.1x, and estimate that the stock has 51.3% upside to $54.47.