BofA Turns Bearish on Nike Stock, Sees More Pressure Ahead
Bank of America downgraded Nike (NKE), cutting its price target to $30 from $47 and lowering EPS forecasts for 2027 and 2028. The firm expects continued sales pressure through 2027, citing weak demand and challenges in China. Nike's revenue was $46.4B in fiscal 2026, with net income down 3% to $3.1B.
How this was made
The 30-second read
Why it matters
The downgrade suggests a near‑term bearish bias for Nike, with the stock already down ~1% pre‑market.
Market read
Nike's downgrade may trigger broader reassessment of consumer discretionary stocks with China exposure.
What to watch
Potential upside from upcoming product launches and cost‑cutting initiatives not fully reflected in the downgrade.
Background
Bank of America analysts lowered Nike's price target and earnings forecasts amid weak demand and a 17% revenue decline in Greater China.
Ticker impact
BofA downgraded Nike, cut price target to $30 and lowered FY27‑28 EPS forecasts, prompting a 1% pre‑market drop.
Potential further decline of 2‑3% if earnings miss persist.
Target cut of 36% and EPS reductions signal weaker demand, especially in Greater China, increasing downside risk.
Market effects
Footwear and apparel sector may see pressure as peers with China exposure could be re‑rated.
Greater China retail outlook weakened, could affect other consumer discretionary names with China exposure.
Nike's downgrade may temper broader consumer‑discretionary sentiment in global equity markets.
Counterpoint
If Nike can accelerate margin improvements, the steep target cut may be overdone, presenting a buying opportunity.
Key entities
- companyNike
Global athletic apparel and footwear manufacturer.
- analystBank of America
Equity research firm issuing the downgrade.
