BofA downgrades NKE to underperform ($30 PT) citing negative sales through FY2027 and no recovery until FY2028; speaker sees eventual transformation but patience is running out.

Let's talk about Nike. I conducted my own poll on the subway today. Nike shoes were more popular than other sports shoes. I looked for OnCloud, Adidas and Puma shoes, and I like to conduct this survey on the subway to see what people are wearing, and Nike was the most present.

But let's talk about the stock. You might need to start your own "Nicole" survey when it comes to this sportswear manufacturer. Listen, Nike is receiving another rating downgrade now, and the stock is down more than 1%, around 1.5% currently.

Bank of America downgraded the stock's rating to " underperform" from "neutral" . They have lowered their price target to $30. This is a significant drop from the $47 level. So, this indicates a further decline from current levels.

They believe that a tangible recovery in sales may not occur until 2028 , i.e., fiscal year 2028. Keep in mind that Nike's stock has already fallen by more than 40% this year before today.

Therefore, it is clearly a very poor performance .

Bank of America now expects Nike sales to remain negative until fiscal year 2027. They have lowered their earnings estimates for fiscal years 2027 and 2028. But I'm still, you know, a Nike fan.

I can see their transformation eventually happening, but patience is running out.

Yes, the lowest levels in more than 10 years. This makes matters worse .