According to CNBC, Bank of America downgraded Nike to underperform from neutral and cut its price target to $30 from $47, implying nearly 17% downside from Thursday's close. Analyst Lorraine Hutchinson said risks are rising and warned that Nike faces downside risk to earnings estimates and its stock price as innovation is being overshadowed by its pressured classics business amid sluggishness in the category. She said Bank of America now expects negative sales growth through F27E, versus its prior view of a spring inflection, and lowered its fiscal 2027 and 2028 earnings per share estimates by 11% and 12%, respectively. The analyst also said Nike's dividend payout ratio is above 100% and reduced the firm's income rating to 8 from 7. Nike shares have fallen 47% over the past year, and Bank of America said the company still faces tariff hikes and weak demand in China, where promotional pressure could continue through the second quarter.