Nike level of urgency ‘in question,’ says Baird

After Nike hosted its annual meeting of shareholders today, Baird called commentary from CEO John Donahoe and key leaders “tightly scripted and uninspiring.” While management continues to make the case that more time is needed to drive a positive inflection in the business, material underperformance for the company’s earnings and stock price under Donahoe’s leadership are “raising the temperature from the outside,” says the analyst, who views the level of urgency as “in question.” The firm’s Outperform rating reflects the view that the stock can recover over time given low current expectations and the potential for a change in the direction, but Baird acknowledges “current conviction and visibility remain low.”