ByBloomberg
Published September 28, 2026Reading time3 minutes
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Wall Street’s Nike fandom lowest in 25 years as BofA downgrades
ByBloomberg
Published
September 28, 2026
Wall Street’s enthusiasm for Nike Inc. has reached the lowest in at least a quarter of a century as Bank of America Corp. became the latest to sour on the troubled sportswear firm.
Analyst Lorraine Hutchinson downgraded shares of the sportswear maker to underperform from neutral, pushing back expectations of a sales turnaround to 2028. She also slashed earnings estimates for 2027 and 2028, flagging downside risks to profit as well as valuation.
“We see downside risk to EPS estimates and valuation as Nike’s innovation continues to be overshadowed by a pressured classics business, while category and macro pressures build,” Hutchinson wrote in a note published on Friday.
On a scale from 1 to 5, in which 5 is a buy and 1 is a sell, Nike’s shares now have a consensus analyst recommendation of 3.3, according to data compiled by Bloomberg. That is the lowest since at least 2001, when records began.
Shares in Nike fell 0.4% as of 2 p.m. in New York, extending declines for a third-straight session. Hutchinson’s new price target of $30 implies a 17% decline from Thursday’s close. The stock has not had a positive year since 2021, and remains on pace for its worst yearly performance since 1993, when Michael Jordan retired from professional basketball for the first time.
Bank of America’s Hutchinson noted that risks around the company’s efforts to turn its business around are rising. In North America, the analyst anticipates that wholesale momentum will slow as sales to consumers lag behind sales to retailers due to a lack of classic styles and new launches failing to resonate with consumers.
Meanwhile, Hutchinson considers the company’s China business to be “in flux,” flagging likely promotional pressure stemming from a reduction in partner online sales. And in Europe, the company is facing macroeconomic and competitive pressure.
“With sales under pressure, the earnings outlook increasingly depends on gross margin expansion and cost control, creating downside risk if progress falls short,” the analyst wrote.
Nike, a darling of Wall Street up until a few years ago, saw its fortunes turn as sales of Jordan-branded merchandise slumped and the sportswear division struggled to compete with the likes of Deckers Outdoor Corp., the maker of Hoka running shoes.
The company now finds itself in the midst of a strategic overhaul called “Win Now,” spearheaded by Chief Executive Officer Elliott Hill. But things have not been smooth. Nike has lost more than half of its value since Hill’s return was announced more than two years ago, erasing almost $77 billion in market capitalization. And slow progress on the Win Now strategy has caused frustration.
Nike is also contending with several hits to its brand image. Recent setbacks include both teams in the FIFA World Cup Final using gear by rival Adidas AG, the loss of French football superstar Kylian Mbappé to On Holding AG, and its Converse brand being criticized for evoking the Ku Klux Klan and lynching.
A recent change Nike hopes will help with its turnaround is the arrival of David Denton, who joined as chief financial officer from Pfizer Inc. in August. But, as Hutchinson warns, Denton is inheriting a situation with “limited room for operational error.”
“With a new CFO at the helm, cost cutting will likely become a key topic,” Hutchinson wrote. “We don’t think there‘s room to cut demand creation, but do expect declines this year in operating overhead expenses and the cost structure is scrutinized with fresh eyes.”
