01:16 PM EDT, 06/17/2024 (MT Newswires) -- 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 ( NKE ) 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 ( NKE ) price target to $114 from $116 while maintaining its overweight rating.

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