Core Viewpoint - BofA Securities analyst maintains a Buy rating on Nike Inc while lowering the price forecast from $90.00 to $80.00 due to tariff impacts and market valuation shifts [1][2] Group 1: Tariff Impact and Market Valuation - Nike shares have underperformed the S&P 500 since April 2, with a decline of 12% compared to the index's 5% drop [1] - The price forecast adjustment reflects a reduced F2027 P/E multiple of 27x from a previous 30x due to overall market valuation changes [2] - If 5% of Nike's U.S. imports face a 145% tariff and the rest of the world sees a 10% rate, the average global tariff would be approximately 16.75% [3] Group 2: Manufacturing and Pricing Strategy - Nike has a diversified manufacturing base, with footwear production primarily in Vietnam (50%), Indonesia (27%), and China (18%) [3] - To mitigate margin compression of about 110 basis points from tariffs, Nike could implement a modest 2% global price increase [4] - A potential increase in tariffs to 45% would require a 6% price increase globally to offset the impact on margins [4] Group 3: Performance in China - Nike's growth in China has significantly declined from 38% to as low as -5% following U.S. sanctions on cotton imports linked to Xinjiang [5] - Analysts expect continued challenges in Nike's China performance through the first half of FY26, with a potential rebound in the second half contingent on U.S.-China relations [6] - Despite a smaller projected share of sales and profits from China in FY26 compared to pre-pandemic levels, the region remains crucial for Nike [5]