Nike CEO change brings positive catalyst needed, says Deutsche Bank

Deutsche Bank says the firm’s confidence in Nike’s turnaround efforts and return to sustained growth is increased following the announcement of Elliott Hill, a seasoned Nike veteran, as the new CEO. This “highly anticipated leadership change will inject a much-needed sense of urgency,” focusing on product innovation, marketing, and rebuilding wholesale partnerships, areas that suffered under previous leadership, the analyst tells investors in a research note. Deutsche says Hill’s strong internal and retail partner relationships “should provide an immediate morale boost.” Nike’s “weak” fundamentals will be largely overlooked in the near-term and the upcoming investor day “will now likely offer a fresh new dynamic and help renew investor confidence,” says the firm. It keeps a Buy rating on the shares with a $92 price target.