Nike's hard-hit shares rallied Friday as Wall Street analysts largely welcomed the company's appointment of veteran executive Elliott Hill as its new CEO.

The hedge fund billionaire Bill Ackman has bet big on the iconic American brand. His firm, Pershing Square, acquired three million shares, or 0.2 percent, of Nike this spring. His stake is currently worth about $250 million.

Nike Inc. has named Elliott Hill as its president and CEO effective, replacing John Donahoe, who will retire next month.