A major leadership change is happening at Nike (NKE), as chief innovation officer Tom Bignall is leaving the company less than a year after getting the role. Notably, he was promoted by CEO Elliott Hill last June as part of a push to improve Nike’s innovation and product pipeline. However, that plan is already changing, as Bignall is now stepping down to focus on creative and philanthropic interests. Therefore, Nike is once again changing leadership in one of its most important roles.
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What makes this more notable is how often this position has changed recently, which suggests a lack of stability. Andy Caine, who is currently Nike’s vice president and creative director for sportswear, will take over the role starting Sunday. He will report to Phil McCartney, who leads innovation, design, and product at the company. Nevertheless, Caine will be the fourth person to head innovation at Nike in just three years.
In addition, it is no secret that Nike has been struggling for a while now, as the stock has fallen more than 33% this year. Moreover, Piper Sandler (PIPR) recently downgraded the shares from Buy to Hold and cut its price target to $50 from $60. Analysts said that Nike needs to improve its product innovation in order to offset lower sales of classic shoes like Air Force 1, and they also raised concerns about the company’s turnaround plan.
Is NKE Stock a Good Buy?
Overall, analysts have a Moderate Buy consensus rating on NKE stock based on 14 Buys, 10 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average NKE price target of $62.05 per share implies 46.1% upside potential.
