The analyst suggests that Nike’s worst may nearly be over, with the recent CEO transition from John Donohoe to Nike(NKE) veteran Elliott Hill seen as a major turning point – “Nike’s proverbial white knight.”
The analyst also acknowledges that management accepts past mistakes and takes decisive steps to correct them.
Although these strategies may pressure profits on P&L in the short term, they are viewed as the right moves for the company, Nikic writes.
While rebuilding the brand’s momentum will take time, the analyst sees potential for Nike(NKE) to become an attractive “story stock” in 2025, especially if performance has hit its lowest point and investors view Elliott Hill as the company’s savior.
