Nike price target raised to $127 from $120 at Morgan Stanley

Morgan Stanley analyst Alex Straton raised the firm’s price target on Nike (NKE) to $127 from $120 and keeps an Overweight rating on the shares ahead of the company’s fiscal Q2 report, which he thinks could "slightly beat Street forecasts" given stronger-than-expected topline results from global brands such as Capri Holdings (CPRI), Tapestry (TPR) and On Holding (ONON) and encouraging intra-quarter commentary, primarily from Skechers (SKX). While the strong demand and exit rate noted on Nike’s fiscal Q1 earnings call has likely continued through the quarter, but any potential topline upside could be offset by ongoing China softness and average selling price pressure from elevated discounting in North America, leaving his estimates in-line with Street expectations for Q2 total revenue, said Straton, adding that the 2023 set-up "remains attractive."