- Nike‘s ad featuring Colin Kaepernick shows that the company communicates with its core consumers in a “provocative way,” said Camilo Lyon, a Canaccord Genuity analyst.
- The ad was a “subtle but significant sign of Nike’s strength and confidence in its position in the marketplace,” Lyon said.
- The company nearly lost its crown as king of the sneaker market last year because its popular Jordan shoes were too easy to get and so not as elusive or cool.
- Lyon raised his price target and rating on Nike.
- Watch Nike trade in real-time here.
Nike is successfully staging a turnaround, and its recent ad featuring former NFL player Colin Kaepernick is a subtle sign of its strength, according to Canaccord Genuity.
Last year, Nike nearly lost its crown as king of the sneaker market because the company overproduced its high-scale shoes, making its popular Jordan shoes too easy to get and so not as elusive or cool.
“We believe margins are healthy as sell thrus have steadily improved on retro product,” Lyon said.
Nike’s recent controversial ad campaign – which tapped several athletes including Kaepernick as the faces of a campaign marking the 30th anniversary of its “Just Do It” slogan – shows the company’s renewed strength, the analyst noted.
Kaepernick, a former football quarterback, protested racial injustice by kneeling during the national anthem.
Nike‘s bet on Kaepernick has paid off, at least among millennial investors, according to data from Robinhood, a no-fee brokerage popular among younger traders. A total of 15,191 investors added Nike to their portfolios last week through Thursday, up 45% from the prior week, according to Business Insider’s tracking of the data.
Shares were up 30% this year through Tuesday.
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