Bank of America downgraded Nike to underperform from neutral and cut its price target to $30 from $47, implying nearly 17% downside from Thursday’s close. Analyst Lorraine Hutchinson said risks are increasing as Nike’s innovation remains overshadowed by its pressured classics business and weakness across the category. The bank now expects negative sales growth through fiscal 2027, replacing its previous expectation of a spring inflection, and puts fiscal 2027 earnings per share 14% below VA consensus. It also reduced its fiscal 2027 and 2028 EPS estimates by 11% and 12%, respectively. Bank of America said Nike’s dividend payout ratio exceeds 100%, lowering its income rating to 8 from 7. The revised price target uses a 16x price-to-earnings ratio, down from 22x and aligned with the peer average. Nike shares have fallen 47% over the past year amid macroeconomic pressures including tariff hikes, while the company’s Win Now recovery strategy also faces difficulties in China. Hutchinson said Nike’s China reset faces a tougher demand backdrop, with reduced partner online sales likely to create promotional pressure through the second quarter. Competition remains intense, and Bank of America sees a risk that sales decline at least through fiscal 2027. Five analysts have downgraded Nike since the beginning of August; among 44 analysts tracked by LSEG, 26 rate the stock hold.