Nike's (NKE) operational weakness is expected to persist for at least the next few quarters, though its intermediate- to longer-term recovery prospects under new CFO David Denton, a retail and consumer veteran, appear promising, Oppenheimer said Tuesday in a note.
The brokerage said it remains upbeat about recent "wins" at Nike, including new product innovation and the successful restructuring of core wholesale relationships domestically.
Conversations with clients suggest the near-term sentiment toward Nike may now be possibly "washed out", implying the shares could trade sideways in the worst case scenario, until clearer positive fundamental catalysts emerge, according to the note.
Oppenheimer kept an outperform rating on Nike.
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