Nike price target lowered to $124 from $125 at Morgan Stanley

Morgan Stanley analyst Alex Straton lowered the firm’s price target on Nike to $124 from $125 and keeps an Overweight rating on the shares. The firm sees upside to Q3 and fiscal year EPS on “a low bar” set last quarter, but views equity appreciation as contingent upon increased line-of-sight to Nike’s long-term growth and profitability targets, which isn’t likely until Q4 of the first half of FY25 “at the soonest,” the analyst tells investors in an earnings preview note. The firm sees “seemingly overly-bearish sentiment” against many potential positive catalysts in the next twelve months, but thinks the Q3 report “likely does little to change the narrative on the stock,” the analyst added.