11:28 AM EDT, 09/25/2024 (MT Newswires) -- Nike ( NKE ) is expected to deliver fiscal q1 results and Q2 outlook in line with Wall Street expectations, with a possibility that the full-year guidance will be lowered, Morgan Stanley said Wednesday.

The athletic footwear and apparel maker is scheduled to report fiscal Q1 results Tuesday. The Street is looking for earnings around $0.50 a share and sales to decline 10% year-over-year, according to the note.

"Even results above our/Street expectations would still likely reflect challenged fundamentals," Morgan Stanley said.

Morgan Stanley expects Nike ( NKE ) to issue a fiscal Q2 EPS outlook around the Street's forecast of $0.82.

"While NKE's 1H guidance assumptions may prove reasonable, we think the 2H improvement embedded in FY guidance is optimistic, [and] hope for a FY guidance reduction," the firm wrote.

Morgan Stanley raised its price target on the Nike ( NKE ) stock to $82 from $79 while maintaining its equal-weight rating.

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