Barclays is reiterating its Overweight rating and $142 per share price target on Nike (NKE). Barclays Consumer Discretionary Senior Analyst Adrienne Yih — who named the athletic apparel brand Barclays' "Best Idea of 2024" — joins Yahoo Finance Live to discuss the biggest catalysts for Nike's stock, including its supply and inventory, and what trends may be detracting from Nike's growth.

"[Investors] should be grading the company on what is new and the incremental unit newness. so, what's going to get the consumer to spend... dollars on a new pair of shoes," Yih says. "I can appreciate the retro... side of things, but that's... been the problem with Adidas, with Vans, and with Nike. they're selling the same things over and over, and it's getting, quite frankly, kind of boring. They sort of missed out on what I call the 'Sole Wars'..."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

SEANA SMITH: Adrienne, when you take a look at this name, you're still bullish about what Nike maybe is going to prove in 2024. What are the catalysts ahead for this stock?

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ADRIENNE YIH: So, the catalysts are really, number one, that they absolutely have their inventory. So the supply side of things is unarguably fixed. And so that's half the battle, right? So they want to get to a pull market where their wholesale channel partners are ordering, replenishing, restocking from them. And that's a guaranteed plus to the revenue.

We don't think that's happening in the first half of the year at all. We already know that all the retailers are still buying down and very conservative. But you have to have a replenishment cycle of newness. And that's where the innovation comes in.

The catalysts are a whole slew of innovations coming for this year, the likes of which we haven't seen in two years. And I can go through those in a second. But that's really the two catalysts, innovation to drive top line, supply is tight.

BRAD SMITH: Adrienne, when you mentioned innovation, I was just reading in recently on that new Air Max Dn, that platform particularly, and it really seems interesting where-- for a shoe company that's had so much success with the retros that gets everybody clicking, that gets people going on to a sneakers app and crashing the dang thing all the time-- where they're balancing innovation and need to balance innovation with what people have just flocked to in the past. And so what is the correct way that investors should be grading the company on how they execute that?