10:47 AM EDT, 09/25/2024 (MT Newswires) -- Nike's ( NKE ) management is likely to take the opportunity to rebase fiscal 2025 guidance lower when the company reports its fiscal Q1 results on Oct. 1, RBC Capital said in an earnings preview Wednesday.

"We believe a [fiscal 2025] guidance cut would be neither surprising nor unwelcome by investors and shareholders," RBC said. "It would signal a rebasing of expectations from the new chief executive and underline the end of the previous management's tenure with a cleaner base."

The firm said a lower guidance would provide a better setup into fiscal 2026, the first year for which Elliott Hill is to have full accountability. Hill is set to rejoin Nike ( NKE ) as chief executive officer next month.

For fiscal Q1, RBC said it expects the company to report revenue of about $11.6 billion.

RBC raised its price target on Nike ( NKE ) to $85 from $75 and maintained a sector perform rating on the stock.

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