Nike (NKE) is expected to report in-line results for fiscal Q4 on June 27, according to Morgan Stanley, which models a 1% sales growth for the quarter compared with the Street’s 0.6% increase.
“4Q is unlikely to shift the thesis on NKE as questions around L-T growth & profitability remain, though it will give us a first look into the P&L impacts of mgmt.’s recent strategy evolution,” the report said.
Morgan Stanley said the market will focus more on Nike’s initial guidance for fiscal Q1 and 2025 as strategic changes from the management seem more likely to materialize in fiscal H1 2025 and beyond results.
“We anticipate NKE sets a low FY guidance bar given early-days & evolving strategy initiatives, potentially guiding initial ’25e EPS a touch below the Street,” the report said.
Morgan Stanley cut Nike’s price target to $114 from $116 while maintaining its overweight rating.