One Wall Street analyst is calling Nike's (NYSE: NKE) controversial adverting campaign featuring former San Francisco 49ers quarterback Colin Kaepernick "a stroke of genius" and upgraded the company's stock to a buy rating Tuesday.
"We believe Nike's new 'Just Do It' ad campaign with Colin Kaepernick was a stroke of genius," Canaccord Genuity's Camilo Lyon wrote to clients.
"This premeditated move was another subtle but significant sign of Nike's strength and confidence in its position in the marketplace, one that likely does more good than harm."
The analyst raised his price forecast for the stock as well, telling clients that shares could rally to $95.00 in just 12 months. The new target implies 15% upside from Monday's close.
The campaign, released last Tuesday to commemorate the 30th anniversary of Nike "Just Do it" slogan, drew a deluge of criticism and support from shoppers.
Kaepernick, one of the most polarizing figures in the sports world, has gone unsigned since March 2017 since he took a leading role in player protests during the national anthem.
Kaepernick and others knelt during the anthem in an effort to call attention to racial injustices and social inequality.
While Nike shares originally slid in the wake of the controversy, shares have since recouped all their losses.
Despite the initial 3% drop in stock price, Nike's online sales jumped after announcing the campaign. Between Sunday and Wednesday of Labor Day weekend, product orders rose 27%, according to Edison Trends, a digital-commerce researcher. In the same period last year, product orders fell 2%.
Nike shares opened Tuesday up $1.23, or 1.5%, to $83.33
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