Nike Inc.'s shares soared over 5% in pre-market trading on Monday, as investors cheered the sportswear giant's renewed focus on product innovation and wholesale partnerships under the leadership of its new CEO, Elliott Hill.

Jefferies analyst Randal Konik upgraded Nike to a "Buy" rating and raised the price target to $115 from $75, citing the company's efforts to tackle its recent challenges head-on. According to Konik, Hill's playbook, which includes restoring wholesale partnerships and pushing for new products, is expected to drive a surge in profitability and increase Nike's share of the athletic footwear market over the next few years.

The analyst believes that Nike's brand remains very strong, and the issues were self-inflicted rather than due to severe competitive threats. Konik projects a V-shaped margin and earnings per share (EPS) recovery in fiscal 2027, with EPS estimates of $3.50, well ahead of the consensus estimate of $2.95.