Bank of America Downgrades Nike Stock Amid Persistent Challenges
Nike (NKE) faces mounting pressure as Bank of America downgraded the stock from Neutral to Underperform and cut its price target significantly. The move reflects concerns over a slower-than-expected recovery, with analyst Lorraine Hutchinson citing underperformance in key lifestyle categories despite new product launches. Nike's shares have already fallen about 44% this year, and BofA anticipates further declines before any meaningful rebound occurs. The downgrade highlights three main issues: declining sales of classic products, weak performance through retail partners like Dick’s Sporting Goods and Foot Locker, and struggles in the Chinese market where local competitors Anta and Li Ning are gaining ground. Hutchinson also reduced her earnings forecasts for fiscal 2027 and 2028 by double-digit percentages. BofA is not alone in its pessimism; other major banks like JPMorgan, Oppenheimer, Barclays, and Goldman Sachs have similarly revised their outlooks on Nike downward this year. The sell ratings now hit a 30-year high for the stock.
Topics: Bank of America Nike price target cut stock downgrade