NKE Stock Slips Premarket: BofA Sees Longer Turnaround, Cuts Price Target To $30

Kylian Mbappé ended his partnership with Nike (NKE) to join On (ONON) in a cash-and-equity deal, marking On's first major soccer star. Nike chose not to renew Mbappé's contract. On aims to leverage Mbappé's global profile to expand into soccer, while Nike retains other major soccer agreements. Both companies' shares showed minimal movement post-announcement.

Bank of America analyst Lorraine Hutchinson downgraded Nike (NKE) to underperform, setting a $30 price target, 15% below current levels. She cites prolonged revenue weakness, Greater China sales decline, and wholesale inventory risks. Nike's stock is down 45% year-to-date. Hutchinson also lowered EPS estimates for 2027 and 2028, raising concerns about dividend durability with a 107% payout ratio projected for 2027.

Nike (NKE) shares hit a 10-year low at $35.22, down 43% in 2026 and 76% over five years. Bank of America downgraded NKE to Underperform with a $30 target, citing weak earnings and sales growth. S&P removed Nike from the S&P 100, triggering index fund rebalancing. China revenue fell 17%, and North America retail sell-through lags. BofA warns of an unsustainable dividend payout ratio. Earnings are due October 1.

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.

Nike (NYSE:NKE) stock fell after BofA downgraded it to Underperform, cutting its price target to $30. BofA cited risks to earnings and valuation due to pressure in Nike's classics business and macroeconomic headwinds. The firm also lowered its EPS estimates for fiscal 2027 and 2028, projecting negative sales growth. Nike's stock is trading 28.4% below its 200-day SMA, maintaining a bearish trend.

Bank of America downgraded Nike (NKE) to underperform, lowering its price target to $30 from $47. Analyst Lorraine Hutchinson cited rising risks, including downside to earnings estimates and sluggish sales growth. Nike's shares have fallen 47% over the past year, with challenges in China and intense competition noted. The bank expects negative sales growth through fiscal 2027.