Wedbush reiterates its 'outperform' opinion and cuts its price target from $115 to $97 on Nike, the day after the sporting goods supplier released its results for its final quarter 2023-24.

'The release is unlikely to do much to improve sentiment on the stock, having missed revenue and gross margin expectations, and demonstrating ongoing challenges for the company', believes the broker.

"In addition, Nike has indicated that these challenges have led it to update its outlook for fiscal 2024-25", continues Wedbush, which therefore anticipates a reduction in revenue or margin targets at the next press conference.

Stressing, however, that over the long term, Nike has proven to be one of the most successful growth stories in its coverage, he expects the brand to 'regain its mojo', while acknowledging that it 'looks like we'll have to wait longer'.

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