Nike’s CEO is stepping down, and others on Wall Street seem lukewarm on the news. On Thursday after the bell, the sneaker giant announced that CEO John Donahoe will retire on October 13. Elliott Hill, who worked at the company for 32 years before retiring in 2020, will take over the position the next day. While UBS sees the change as positive for the stock in the near term, and adds that Hill has the potential to put Nike back on the path to growth, the firm cautions that any potential momentum is already losing steam. “For this reason now in the past, our guess is that the market will focus on Nike’s fundamentals and its earnings announcement on October 1,” analyst Jay Sole wrote in a note to clients on Thursday. “We think sentiment could change significantly as the market realizes that Nike’s fundamentals are probably not good … and there are probably no quick fixes to Nike’s problems.” Sole maintained his neutral rating on the stock and has a price target of $78, which represents a more than 3% decline from Thursday’s close. This year, Nike shares are already down nearly 20%. NKE YTD mountain NKE, year to date Morgan Stanley called the change “unsurprising” as there is still a “big mountain” for the company. The investment firm believes that a decline in Nike’s full-year forecast is now possible during its upcoming first quarter earnings report for fiscal 2025. If the ratings are cut, analyst Alex Straton speculates that a positive but “muted” stock reaction to the change could be seen. they disappear as investors face the company’s fundamentals which may get worse before they get better in the next year. Straton has an equal weight rating on the stock, which has a price target of $79, or more than 2% down from Thursday’s close. Others, however, have turned heavily on Nike following the decision. Wells Fargo maintained its overweight rating and raised its price target by $9 to $95, up 17% from before. “We expect a number of upsides associated with Hill’s hiring — as the leadership has been highly controversial and the stock has been subject to controversy,” analyst Ike Boruchow wrote in a note. “Furthermore, green shoots were emerging from wholesale (including positive comments from the likes of DKS, FL, ASO, and JD Sports) as it could be argued that most of the bad news in the story is well behind us at this point. CEO change announced, bulls now they are visible.” Bank of America also maintained its buy rating and believes this is the first step in turning the company around. Bernstein, who has an outperform rating on Nike, expects the turnaround “will take time,” but said the market will be sensitive. Their targets are up 28% and 34%, respectively, from Thursday’s close. “A lot still needs to change, including streamlining the slow design process, restoring feedback loops to understand changing consumer preferences, and getting rid of old product to make room for innovation,” Bernstein analyst Aneesha Sherman wrote in a Thursday note. . “But we believe the market will be more forgiving of slow and steady change if they trust that the right leader is in charge.”