"We remain positive on NKE as demand for Nike's products remains strong and the company's LT outlook (HSD annual revenue growth and a high-teens operating margin) remains unchanged," Fernández wrote. China Uncertainty: Wells Fargo analyst Kate Fitzsimons said Nike's guidance is likely conservative, but China uncertainty will likely continue to be an overhang for the stock. "While the 2Q print shows that NKE is navigating global supply disruptions well (canceled over 130M unit orders with 3 months of Vietnam factory closures), tougher results in China in 2Q and 'less worse' albeit likely still negative 3Q trends in the region are unlikely to be rewarded on the valuation front, especially considering the stock trading at a ~9-10x turn premium vs. pre-pandemic averages," Fitzsimons wrote.