Keep an eye on rebounding shares of Nike (NKE).
After bottoming out at around $77.40, it’s just starting to pivot higher. Last trading at $80.98, we’d like to see it initially retest $85. Helping, CEO John Donahue is stepping down and will be replaced by Elliott Hill. Plus, as noted by CNBC, “Nike is in the midst of a broader restructuring after it shifted its strategy to sell directly to consumers. Critics say in the process of building out sales at Nike’s own stores and website, it lost sight of innovation and failed to churn out the types of groundbreaking sneakers the company was known for.”
Analysts at Wells Fargo, Piper Sandler and Baird also raised their price targets on the stock.
Piper Sandler now has a $80 price target, noting that, “We view today’s announcement appointing Elliott Hill as the new CEO, with John Donahoe stepping down earlier than the Street was expecting, as a positive for the stock, as this removes an overhang in leadership and creates a potentially interesting setup with the Investor Day in November (albeit Hill will have been with the company only for one month). Bringing a veteran back after significant turnover at the company should also help culture-wise,” as quoted by StreetInsider.com.