Nike Inc (NYSE:NKE) shares are trading higher Thursday following an upgrade from BofA Securities.

What Happened: BofA analyst Lorraine Hutchinson upgraded Nike from Neutral to Buy on Thursday and raised the price target from $110 to $113, noting that “it’s time to just do it.”

Full-year earnings estimates for Nike have fallen 35% over the last two years. When paired with the fact that the stock is trading at 10-year lows on a price-to-earnings basis, BofA believes it’s time to buy.

“We are upgrading Nike to Buy (from Neutral) as estimates finally look achievable, Nike is taking bold steps to transform, and the stock sits at a 10-year trough relative P/E,” the analyst said in a new note to clients.

Hutchinson sees mid single-digit revenue growth ahead with margin expansion. Based on this outlook, the valuation looks “compelling,” she said.

Nike also has catalysts ahead including the company’s first investor day in seven years and the upcoming Olympics, the BofA analyst said.

“Nike has historically benefited from the newness and marketing around the Olympics, and we see this year as no different. Nike has ramped innovation ahead of the event, and we model accelerating demand creation spending to generate excitement,” Hutchinson said.

The BofA analyst noted that she expects margins to buffer the anticipated sales downturn in the near term. Hutchinson’s $113 price target reflects a 1.2x multiple on 25 times forward 2026 earnings.

Thursday’s upgrade is the first of the year for Nike. According to Benzinga’s analyst data, the consensus rating on Nike stock is Buy and the average price target among analysts is $100.33.

Check This Out: Nike Bets On Olympics to Boost Performance Sales: Report

NKE Price Action: Nike shares were up 3.28% at $91.92 at the time of publication, according to Benzinga Pro.

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