Bank of America analyst Lorraine Hutchinson cut Nike shares this week on an "underperform" rating of the stock.

Nike‘s stock has been trading in the $35 to $37 a share range for most of this week, but now one analyst thinks it could fall even lower.

Bank of America (BofA) analyst Lorraine Hutchinson on Thursday cut her price target for shares of Nike to $30, after downgrading the stock to “underperform” from “neutral.”

She sees potential downside risk due to weaker than expected sales in China and wholesale, ongoing pressure in lifestyle categories, a promotional retail environment and innovation possibly at too slow a place.

In short, the BofA analyst doesn’t see innovation offsetting the weakness in the larget lifestyle categories, which in turn limits visibility into more durable sales that would provide an earnings recovery.

Hutchinson noted that Nike has consistently raised its dividend, despite volatility in earnings, but said that coverage is becoming increasingly strained. What she’s saying is that sustainability of the dividend increasingly depends on Nike delivering an earnings recovery, and that future earnings pressure could place the dividend at risk.

Hutchinson also said that with the new chief financial officer at the helm, “cost cutting will likely become a key topic” as operating overhead expenses and the cost structure “is scrutinized with fresh eyes.”

Nike in June disclosed that David Denton would become the new CFO on Aug. 17. Wall Street analysts also have been expecting Nike to provide conservative guidance , given the financial leadership change.

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