Glonghui, March 29 | Morgan Stanley released a report, lowering the target price from $124 to $116 based on a reduction in Nike's mid-term revenue and profit assumptions, maintaining an “incremental” investment rating. The bank lowered Nike's revenue and profit forecast for the fourth fiscal quarter ending the end of May this year, based on both quarterly sales and gross margin guidelines falling short of earlier assumptions. The bank is currently forecasting a 1% year-on-year increase in quarterly sales, which is lower than the 3% increase previously forecast. The quarterly profit forecast was 80 US cents per share, lower than the previous forecast of 91 US cents, but still higher than the management's guidance of 77 to 78 US cents, based on management's more conservative views on revenue and sales and general administrative expenses. The bank also lowered Nike's revenue and profit forecast for the next fiscal year starting in June this year, from a year-on-year increase of 9% and $4.57 per share, respectively, to a 2% year-on-year increase and a year-on-year increase of $3.77 per share, to reflect management's expectations of a decline in the number of low units of revenue for the first half of the fiscal year, which fell short of the market's original expectations. In terms of profit forecasting, the bank expects operating margin expansion, as expected by management, to have more room for profit growth than to decline due to gross margin, sales, and general administrative costs. It is expected that the earnings forecast per share given by the bank for the next fiscal year can be surpassed.