Nike Downgraded by Bank of America; Shares Remain Flat
On September 25, Nike (NKE) shares closed at $35.75, down 0.67%, following a downgrade from Bank of America which cut its price target for the stock to $30 from $47. The analyst also lowered their earnings per share estimates for Nike in 2027 and 2028 due to concerns about the company's slow turnaround. Investors are awaiting Nike’s October 1 earnings report, hoping it will provide clarity on potential guidance or signs of stabilization. Trading volume reached 34.2 million shares, significantly higher than its three-month average. The downgrade highlights risks for Nike’s dividend sustainability if current projections hold true. The broader market saw gains with the S&P 500 rising by 0.49% and the Nasdaq Composite up 0.48%. Other athletic apparel peers like lululemon athletica (LULU) and Under Armour (UAA) also experienced declines, indicating mixed pressure across the sector.
Topics: Bank of America downgrade dividend risk EPS guidance Nike