09:08 AM EDT, 09/20/2024 (MT Newswires) -- Nike's ( NKE ) upcoming leadership transition is a "positive" catalyst for its shares as it is expected to increase the company's return to sustained growth, Deutsche Bank said in a note to clients.

Late Thursday, Nike ( NKE ) said Elliott Hill will rejoin the company as chief executive officer, starting Oct. 14, succeeding John Donahoe, who will retire from the role Oct. 13.

"We believe this highly anticipated leadership change will inject a much-needed sense of urgency, focusing on product innovation, storytelling/marketing, and rebuilding wholesale partnerships - areas that suffered under previous leadership resulting in material underperformance in profitability and shareholder returns," Deutsche Bank said.

The bank said Hill has "strong" internal and retail partner relationships that should immediately boost morale.

Deutsche Bank has a buy rating on Nike ( NKE ), with a price target of $92.

Nike ( NKE ) shares were up 8.4% in premarket activity on Friday.

Price: 87.78, Change: +6.80, Percent Change: +8.40