Shares rallied 0.85 percent in premarket trading following the Canaccord note.
The analyst raised his price forecast for the stock as well, telling clients that shares could rally to $95 in just 12 months. The new target implies 15 percent 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-percent 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 percent, according to Edison Trends, a digital-commerce researcher. In the same period last year, product orders fell 2 percent.
Highlighting Nike’s new product pipeline as a primary reason for the upgrade, Lyon said stakeholders should expect a reversal of fortune after an underwhelming two years.
“Since last year’s announcement of its new ‘Triple Double’ strategy, Nike has most notably accelerated its product engine as evidenced by a flurry of new innovation,” Lyon wrote. “It also has increased its focus on the consumer experience via its SNKRS app, NikePlus membership, and other in store/ online consumer-centric initiatives.”
“These elements, underpinned by Nike’s transformation to an experientially driven company, combine to form catalysts to sustaining mid-teens earnings per share growth for the next three years, an outlook that is increasingly visible and reflective of F2021 earnings power approaching $4.00.”