Nike's new CEO is set to double down on the company's success selling online. Here's what analysts are saying about John Donahoe.
- Nike CEO Mark Parker is stepping down from his role and will be replaced by former eBay chief executive John Donahoe in January, the company announced Tuesday.
- Some analysts expressed initial confusion as to why Nike didn't promote from within its ranks, yet many praised Donahoe's experience leading digital businesses and his time on the sportswear brand's board of directors.
- Here's what analysts had to say about the CEO change and Donahoe's appointment.
- Watch Nike trade live here.
Nike CEO Mark Parker is stepping down from his role at the sportswear giant after leading it for 13 years, and his replacement is earning praise from Wall Street for his background in online sales.John Donahoe will replace Parker in January after sitting on Nike's board since 2014. Donahoe was eBay's president and CEO from 2008 to 2015 and more recently served as chairman of PayPal. He is currently president and CEO of cloud-computing company ServiceNow.
He told Nike employees in an internal memo that he's "not going anywhere," according to Bloomberg, and will serve as executive chairman of Nike's board of directors.Read more: Wall Street has fallen in love with stocks that pay big dividends, and Goldman says they're still the cheapest in a decade. Here are the 13 the firm recommends most.
Nike traded at $92.90 per share at 1:44 p.m. ET Wednesday, up roughly 25% year-to-date.The sportswear retailer has 24 "buy" ratings, nine "hold" ratings, and two "sell" ratings from analysts, with a consensus price target of $101.90, according to Bloomberg data.Here's what some analysts had to say Wednesday about the CEO announcement, and how Donahoe may push Nike higher in the age of e-commerce.
Needham: "A highly accomplished technology & software executive"
Wedbush: "Large sneakers to fill"Advertisement
Credit Suisse: "Nike remains one of our top picks"
UBS: "One mild concern"Advertisement
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