Shares of Nike Inc (NYSE:NKE) continued to decline in early trading on Friday, after the company reported a rare earnings miss for its fiscal fourth quarter. Here’s a look at some key analyst takeaways.

Wedbush On Nike

Analyst Tom Nikic maintained an Outperform rating while raising the price target from $121 to $139.

Nike reported mixed quarterly results and its first-quarter outlook was below expectations, Nikic said in a note. While demand in North America “remains strong,” recovery in China “seems to be on track,” he added.

The company made “significant inventory-cleanup progress,” offering visibility into gross margin expansion, the analyst further stated.

RBC Capital Markets On Nike

Analyst Piral Dadhania reiterated an Outperform rating while reducing the price target from $138 to $134.

“We are encouraged by the 'health' of the Nike business exiting a challenging FY23, noting completion of inventory liquidation slightly ahead of plan, Gr China double-digit 4Q23 growth, strong brand and product momentum and clear consumer led channel strategy,” Dadhania wrote in a note.

“Whilst FY24E guidance is below sell-side expectations, we believe it is more in-line with buy-side expectations based on recent discussions,” he added.

Check out other analyst stock ratings.

Telsey Advisory Group On Nike

Analyst Cristina Fernández reaffirmed an Outperform rating and price target of $135.

Nike reported its fiscal fourth-quarter sales ahead of expectations, driven by the performance in China, Fernández said.

The full-year guidance was mixed, but showed that “the company is beginning to lap higher freight costs and markdown activity,” the analyst stated. “These benefits should continue in FY25,” she added.

KeyBanc Capital Markets On Nike

Analyst Noah Zatzkin maintained a Sector Weight rating on the stock.

“NKE posted strong 4Q top-line results across channels and geographies,” Zatzkin wrote. The company’s inventory position “continues to improve,” he added.

The analyst stated, however, that the guidance “points to a considerable sequential y/y top-line slowdown in 1Q relative to growth in 2023.”

NKE Price Action: Shares of Nike had declined by 2.40% to $110.65 at the time of publication Friday.

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