Morgan Stanley analyst Kimberly Greenberger said she believes Nike is in the "early innings" of a transformation from a wholesale business to a digitally-driven, direct-to-consumer brand that will drive growth in its gross and operating margins to "attractive" levels. However, she expects this "margin transformation" to be less evident in Q2 and Q3 due to tariff pricing adjustments before resuming in Q4. Greenberger, who expects Nike management to reiterate the company's existing FY20 targets with the company's Q2 earnings report next week, has an Overweight rating and $118 price target on Nike shares.