Today, analyst Camilo Lyon of Canaccord Genuity reiterated a Hold rating on Nike Inc (NYSE:NKE) ahead of earnings, though raised his price target from $123 to $132.

The athletic apparel giant will post second quarter earnings tomorrow after market close. Lyon projects EPS of 86 cents, slightly ahead of the 85 cents consensus. The analyst points to three main drivers behind tomorrow’s earnings. First, Lyon highlights the company’s strong collection of sportswear, including Roshe, Huarache, and Tech Pack. Second, Nike’s efforts in direct-to-consumer channel and e-commerce growth are promising. Lastly, the analyst highlights the company’s strength in North America and Western Europe. However, the analyst offers a caveat, explaining, “We believe potential offsets could be slowing futures growth in China, gross margin pressure from discounting in NA, and deceleration in LeBron-specific basketball.”

He also notes that global futures should be strong. The analyst explains that sales in China appeared to have decelerated in September and October, as indicated by softened data from partner retailers. This deceleration means that futures could notably decelerate this quarter.

Lyon concludes, “Overall, with the stock trading at a peak P/E multiple (28x forward EPS) coupled with uncertainty surrounding China and FX headwinds, we remain on the sidelines for now, but raise our price target to $132 from $123 based on tweaks to our F2017 estimates.”

According to TipRanks, most analysts are currently bullish on Nike. Out of the 19 analysts polled in the last 3 months, 18 are bullish on the company with only one analyst on the sidelines. The average 12-month price target for the stock is $140.82, marking an 8.44% potential upside from current levels.

Camila Lyon has a 39% success rate recommending stocks with a 4.4% average loss per rating. The analyst has only given Neutral recommendations to Nike, so he does not have a success rate nor an average return in rating the company.