Nike stock (NKE) dropped about 44% this year, and the pressure is only growing as the company gets ready to report its fiscal 2027 first-quarter earnings on October 1.
The latest blow came from Bank of America. The bank pulled its neutral call on Nike and moved the stock to a sell rating.
BofA also told investors to expect the share price to fall even further before any real recovery shows up.
For anyone holding Nike shares, or thinking about buying while the price is low, BofA believes the recovery investors are hoping for might take longer than expected.
Bank of America pulls its support for Nike stock
Bank of America analyst Lorraine Hutchinson, who has covered Nike for years and previously held a more positive view of the stock, downgraded the shares to Underperform from Neutral. She also cut her price target to $30 from $47, which means BofA thinks the stock could fall another 17% from its recent price near $35.75.
Hutchinson had defended the stock for much of 2026, arguing that the bad news was already priced in.
That view has changed.
She told clients Nike’s recovery is “taking longer to materialize as weakness in its larger lifestyle categories outweighs progress from newer product launches,” according to a note reported by CNBC.
Hutchinson summed up the shift in three words: “Risks are rising.”
Nike sells fashion and sports gear under the Nike, Jordan, and Converse brands. It makes money through its own stores and website, and through retail partners like Dick’s Sporting Goods and Foot Locker.
When both sales channels slow down at the same time, the company’s revenue and profits take a hit.
Nike’s older styles and retail partners are both struggling
BofA pointed to three problem areas. Nike’s classics business, which includes older, popular shoe styles that usually sell steadily without heavy promotion, is selling fewer items, and Nike’s newer products have not been strong enough to fill the gap.
Another issue is how Nike sells through other retailers. Nike has been shipping shoes and clothing to stores, but those products are not selling fast enough on shelves. When that happens, retailers tend to order less in the future, and that delays any recovery.
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The company’s China market is also struggling. BofA said the “China reset faces a tougher demand backdrop.” Chinese competitors Anta and Li Ning have been winning over local shoppers for eight straight quarters. That makes it harder for Nike to grow in one of its biggest markets outside the U.S.
