10:56 AM EDT, 09/20/2024 (MT Newswires) -- Nike ( NKE ) faces "a long road ahead with a lot of potential bumps," though new Chief Executive Officer Elliott Hill "can meaningfully help reinvigorate the brand's product," Truist Securities said Thursday in a note.

Nike ( NKE ) said Thursday CEO John Donahoe will retire. and Hill, a 32-year company veteran, will take the top spot, effective Oct. 14, with "a very positive reputation" in the industry, Truist said.

The leadership change provides "better visibility into a potential turnaround" as Nike ( NKE ) struggles with innovation, marketing and competition from Deckers Outdoors' (DECK) HOKA, ON Holding ( ONON ) and Adidas, Truist said.

In China, competition from rivals and deteriorating consumer demand add to Nike's ( NKE ) hurdles, Truist said.

Truist raised the price target on Nike ( NKE ) to $85 from $81 and maintained its hold rating.

Shares of Nike ( NKE ) rose 6% in recent trading Friday.

Price: 85.83, Change: +4.85, Percent Change: +5.99