Nike price target lowered to $90 from $95 at BofA

BofA lowered the firm’s price target on Nike (NKE) to $90 from $95 and keeps a Buy rating on the shares. New CEO Elliott Hill is taking swift action and “ripping the band-aid off” to reduce inventory to clear the way for innovation, notes the analyst. While this is causing a temporary and steep drop in earnings, BofA thinks this is “the right strategy and it will result in a healthier business,” the analyst tells investors. The firm is lowering its target based on its FY27 EPS forecast of $3.13 as it rolls forward its base year to reflect more normalized earnings, the analyst noted.