Nike stock gained 2.2% to $78.18 in premarket trading Monday. Over the last 12 months, shares have fallen 27%. The Jefferies team anticipates a recovery in margin and earnings per

Jefferies’ Randal Konik sees 50% upside in the stock, as he effectively calls a bottom in earnings and investor sentiment.

Nike's stock cratered 55% from its highs after the company alienated many of its product distribution partners over the last few years. Seeing initial success from its in-house Nike Direct and Nike Digital operations, the company leaned into its own sales capabilities in favor of maintaining relationships with its wholesale partners.