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.

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

Shares of Nike advanced about 5%, one of the best performers in the S&P 500 Monday, after Jefferies raised its recommendation on the stock to buy from hold. The investment bank cited Nike Chief Executive Elliott Hill's strategy to reposition the sportswear brand after years of missteps.

Nike stock has struggled to gain momentum this year, up just 1.1% year-to-date. The $78 level recently acted as resistance, stalling a rebound from its nearly five-year low of $68.62 on Feb. 7. However,