Nike Stock Slides 2% as BofA Cuts Target to $30, Adds to Mbappé Exit Blow

• Nike stock fell about 2% in premarket trading after BofA downgraded it and cut its price target to $30 from $47
• BofA expects sales declines through fiscal 2027 and lowered its earnings forecasts as Nike’s recovery takes longer
• Kylian Mbappé’s move to On adds competitive pressure, while Barclays and Oppenheimer retain more optimistic stock targets

Nike stock fell about 2% in premarket trading on September 25 after Bank of America downgraded the company, raising fresh doubts about its recovery. The call came a week after Kylian Mbappé left Nike for On, giving shareholders another setback to digest. Years of brand recognition and a roster of sporting stars have offered little protection from the selloff. BofA’s latest forecasts suggest the wait for a sales rebound could stretch further than investors expected.

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BofA Cuts Nike Stock Price Target as Recovery Slips

Bank of America analyst Lorraine Hutchinson lowered her Nike price target to $30 from $47 and cut the rating to Underperform from Neutral. The new target sits roughly 16.6% below the stock’s September 24 close of $35.99.

According to reporting on the BofA note, the bank now expects sales to keep falling through fiscal 2027. It reduced its earnings-per-share estimates for fiscal 2027 and 2028 by 11% and 12%, respectively.

The concern is that improvements in newer products are being outweighed by weakness in Nike’s larger lifestyle categories. For BofA, Nike’s recovery is taking too long to justify its previous valuation. This puts more pressure on the company to show that new releases can generate enough sales to offset declining demand elsewhere.

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Mbappé’s Exit Adds to the Pressure on NKE Stock

Losing Kylian Mbappé gives Nike another problem as it works to restore growth. The French soccer star signed with On this month, helping the Swiss company establish a presence in a sport long dominated by Nike, Adidas and Puma.

Reports revealed that the arrangement includes cash and equity, although financial terms were not disclosed. On also brought in Thierry Henry to lead its soccer division. Those appointments make its ambitions clear, though winning endorsements alone does not guarantee commercial success.

Wall Street has not reached a common verdict on NKE stock. Oppenheimer cut its target to $52 from $60 while retaining an Outperform rating. Barclays lowered its target to $48 from $52 but kept an Overweight rating. Both still see room for a recovery, despite trimming their expectations.

Against the same $35.99 closing price, those targets imply approximately 44.5% and 33.4% upside. The gap with BofA’s forecast is substantial. Nike’s next results will give investors a chance to judge whether the more optimistic estimates still hold up.

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