{"id":5802,"date":"2026-09-26T15:26:08","date_gmt":"2026-09-26T15:26:08","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=5802"},"modified":"2026-09-26T15:26:08","modified_gmt":"2026-09-26T15:26:08","slug":"nike-stock-still-hasnt-bottomed-analyst-warns","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=5802","title":{"rendered":"Nike stock still hasn’t bottomed, analyst warns"},"content":{"rendered":"
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Nike (NKE) shares have come under pressure on Friday after a Bank of America analyst, Lorraine Hutchinson, downgraded the athletic footwear company to underperform.<\/p>\n

In her research note, Hutchinson lowered her price target on NKE to $30, signalling potential downside of another 15% from current levels.<\/p>\n

Her bearish call is particularly significant given Nike stock has already been a disappointment<\/a> for investors in 2026, currently down some 45% versus its year-to-date high.<\/p>\n

Why BofA downgraded Nike stock today<\/h2>\n

Hutchinson\u2019s bearish view on NKE shares is rooted in expectations of prolonged revenue weakness across major athletic footwear segments.<\/p>\n

She now expects negative top-line growth through the coming year \u2013 pushing out any meaningful operational turnaround into fiscal 2028.<\/p>\n

Although Nike Inc continues to launch fresh product innovations, these efforts are being largely overshadowed by sharp declines in core lifestyle franchises and classic footwear lineups.<\/p>\n

Plus, wholesale channel trends in North America reflect severe inventory risks.<\/p>\n

Sell-through performance has failed to match wholesale shipments, forcing cautious retailers to re-evaluate forward order books, she added.<\/p>\n

Compounded by a 17% crash in Greater China sales during recent quarters, Nike\u2019s broader revenue base remains fundamentally strained.<\/p>\n

BofA lowers estimates for Nike\u2019s 2027 and 2028 earnings<\/h2>\n

In her report, the Bank of America analyst also signaled growing risks regarding Nike\u2019s financial profile, earnings visibility, and dividend durability.<\/p>\n

She reduced her fiscal 2027 and fiscal 2028 earnings per share (EPS) estimates by 11% and 12%, placing its fiscal 2027 EPS projection of $1.43 roughly 14% below consensus expectations.<\/p>\n

With earnings under pressure, Nike\u2019s projected dividend payout ratio rises to a concerning 107% for fiscal 2027, prompting BofA to downgrade its income rating due to risks that the payout may remain flat or face restructuring.<\/p>\n

Consequently, Hutchinson lowered Nike shares\u2019 valuation multiple to about 16x earnings, aligning it closer to broader peer group averages.<\/p>\n

NKE shares in focus ahead of earnings on October 1<\/h2>\n

As Nike Inc. prepares to release its fiscal Q1 earnings report on October 1, Wall Street sentiment is becoming increasingly divided over how quickly management can engineer a turnaround.<\/p>\n

While consensus estimates anticipate a revenue decline of 2.4% to $11.4 billion, BofA’s research indicates that profit margins and bottom-line stability will remain entirely reliant on aggressive cost reductions and gross-margin controls rather than organic demand.<\/p>\n

With e-commerce restructuring<\/a> adding near-term top-line friction and channel partners scaling back commitments, Bank of America warns that sentiment has further room to deteriorate.<\/p>\n

Investors hoping for a quick cyclical bounce may find that NKE stock has yet to establish a firm valuation floor. Note that the footwear giant is currently trading firmly below all of its key moving averages (MAs) as well, indicating bears remain in control across multiple timeframes.<\/p>\n

The post Nike stock still hasn't bottomed, analyst warns<\/a> appeared first on Invezz<\/a><\/p>\n

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Nike (NKE) shares have come under pressure on Friday after a Bank of America analyst, Lorraine Hutchinson, downgraded the athletic footwear company to underperform.In her research note, Hutchinson lowered her price target on NKE to $30, signalling potential downside of another 15% from current levels.Her bearish call is particularly significant given Nike stock has already…<\/p>\n","protected":false},"author":1,"featured_media":5803,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5802","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5802"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5802\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/5803"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}