Oppenheimer upgraded Nike (NYSE:NKE) to Outperform from Perform in a note Friday, raising its price target for the stock to $120 from $110 per share.
The investment form acknowledged that over the past several quarters, Nike had struggled significantly amid a "confluence of unfavorable external and internal hindrances," which weighed meaningfully upon sales growth and profit expansion.
While challenges persist for Nike, analysts at Oppenheimer are increasingly of the view that multiples at which shares trade and nearer-term financial expectations for NKE are now largely "derisked."
The firm believes Nike shares are poised to rebound gradually as efforts on the part of senior leadership to refocus on product innovation and brand-building take hold.
"Our now more constructive call on shares is generally intermediate to longer-term in focus," said Oppenheimer, which also reinstated Nike as a top mega-cap pick.