12:36 PM EDT, 09/20/2024 (MT Newswires) -- Nike's ( NKE ) appointment of Elliott Hill as CEO is a strong signal of a deeper commitment from the board to turn around the company, focus on both cultural and operational improvements, Oppenheimer said in a note emailed Friday.

Growth in Nike's ( NKE ) consumer segment is anticipated to benefit from Hill's expertise, especially given his history with marketing and consumer engagement during his prior roles, the investment firm said.

Recentchannel checks indicate a strong demand for changes in Nike's ( NKE ) senior management, reflecting dissatisfaction with recent performance, while Hill's return is expected to reinvigorate innovation efforts, particularly in the company's strategic pivot back to its core competencies, it added.

Nike ( NKE ) has been reluctant to restore partnerships with key wholesalers. The market anticipates a more aggressive strategy to regain wholesale traction under Hill's leadership, Oppenheimer said.

Oppenheimer maintained its outperform rating with a price target of $120 for Nike ( NKE ).

Nike's ( NKE ) shares were up 6% in recent trading.

Price: 85.96, Change: +4.98, Percent Change: +6.15