Edgen Stock·Apr 02 2026, 03:06Key Takeaways:
Bank of America downgraded Nike Inc. (NKE) to neutral from buy and lowered its price target to $55 from $73, contributing to an 11% slide in the sportswear giant’s shares. The revision reflects a dim sales outlook and concerns that the company's turnaround strategy is taking longer than anticipated to show results.
"We thought improved performance, product innovation and lapping Win Now actions would result in a return to growth in 1Q27; instead, management has initiated guidance for sales to remain negative into 3Q27," Bank of America analyst Lorraine Hutchinson said in a note to clients.
The downgrade came after Nike projected a sales drop of 2% to 4% for the fiscal fourth quarter, well below Wall Street's expectation of a 1.9% increase. The company also anticipates a low single-digit percentage decline in sales for the remainder of the calendar year, driven by weakness in China and other international markets. Nike's "Win Now" roadmap, introduced in late 2024 to revive sales and brand momentum, has not yet produced the expected improvements.
The downgrade puts the stock at its lowest since April 2024, testing the 200-day moving average. Investors will watch the company's next earnings call for updates on the "Win Now" strategy and any signs of a sales inflection.
This article is for informational purposes only and does not constitute investment advice.
