Key Highlights

  • Bank of America analyst Lorraine Hutchinson lowered her Nike (NYSE:NKE) price target to USD 24 from USD 30 on October 9, 2026, keeping an Underperform rating on the stock.
  • She trimmed fiscal 2027 EPS estimates by 21% and fiscal 2028 EPS by 22%, steep cuts that lower the Earnings base on which analysts value the shares.
  • The note is the second cut from the firm in about a week, according to reports, a pattern that suggests analysts continue to lower their expectations.
  • Price context conflicts: one source cites a 35.15 close while another points to about 32 after an October 2 drop, so the gap to the target is a range.

The Note

Lorraine Hutchinson of Bank of America lowered her price target on Nike (NYSE:NKE) to USD 24 from USD 30 on October 9, 2026 and kept an Underperform rating, which signals that she expects the shares to lag the market. She also cut fiscal 2027 EPS estimates by 21% and fiscal 2028 EPS estimates by 22%. Nike's fiscal year ends in May, so fiscal 2027 runs through May 2027. The report said it was the second cut in about a week, but the research note itself was the basis, and its full reasoning was not available in the summary used here. Readers should read the note or a firm summary for the specific drivers, since the available summary did not list them.

What the Cuts Imply

A target of USD 24 compared with a 35.15 close implies about 32% downside, simple arithmetic on two published numbers. Against a price near 32, the implied downside is about 25%. The two bases reflect a conflict in price context, so the correct comparison depends on the date. Estimate cuts of 21% and 22% are large, which typically reflects lower sales, weaker margins, higher costs or heavier discounting. Nike (NYSE:NKE) has been under pressure from competition and a drop in sentiment, as the October 2 decline mentioned in reports shows. An analyst target is an opinion about value in a year, and it often moves after the stock does, so it should not be read as a prediction.

Risks and What to Watch

The Underperform view carries its own risk, which investors should weigh. Nike (NYSE:NKE) could beat lowered expectations, and a reset in estimates can set up a rebound if results stabilize. Other analysts may disagree, and consensus targets differ from one firm to another. The company also faces tariffs, currency effects, inventory management and consumer demand, which all affect margins. Higher interest rates and Inflation weigh on discretionary spending, and a stronger dollar can cut the value of overseas sales. Watch for the next quarterly report, guidance, other analyst actions and updates on inventory and promotional activity. The Fed meeting on October 27 and 28 and consumer price data on October 14 can also shift sentiment toward consumer stocks.

Where Things Stand

Nike drew another cut because Bank of America lowered its earnings estimates sharply and trimmed its target to USD 24 from USD 30 with an Underperform rating. Nike (NYSE:NKE) faces a gap to that target of roughly 25% to 32%, depending on which price is used. The note is an opinion, not a forecast of certainty, and other analysts may differ. The next evidence is the company's own results and guidance.