This morning, Nike Inc (NYSE:NKE) filed its 10-Q for the fiscal first quarter, which the Street has been immensely anticipating, as it offers a more conclusive, introspective look into the “moving parts” on the athletic retailer’s latest quarter.

Subsequently, Piper Jaffray analyst Erinn Murphy reiterates a Neutral rating on NKE with a price target of $53, which represents a 2% increase from where the shares last closed.

At the close of the first quarter, NKE’s inventory rose 11%. Meanwhile, inventory in North America dipped year-over-year at a 0.8% decline and Greater China inventory surged forward 29% year-over-year, compared to a 52% year-over-year gain in the company’s fourth-quarter. From the analyst’s viewpoint, “We believe both of these will be viewed favorably, although the Street was already anticipating the NA inventory levels to be clean based on mgmt.’s commentary in Q1.”

With that being noted, Murphy also underscores┬áthat inventory levels in Western Europe increased 40% year-over-year, which is an “acceleration” from the 33% year-over-year in the company’s fourth-quarter. Looking back, Murphy underscores that sales in Western Europe inclined 10% year-over-year back in NKE’s first quarter.

The analyst adds that in relation to Western Europe, “Based on our checks in the region, we believe there are higher inventory levels on the ground that is creating higher levels of mark downs.”

“Though ASP was a positive contributor, detraction came from a number of areas including: 1) increased product costs (40 bps); 2) FX (40 bps); 3) off-price sales (30 bps); 4) lower DTC (30 bps); and 5) higher other costs (80 bps). We note that other costs include investments in sourcing and manufacturing, warehousing and logistics, as well as the golf business exit. The remaining 40 bps of GM headwind is not aligned to a specific initiative,” Murphy concludes.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Erinn Murphy is ranked #4,031 out of 4,184 analysts. Murphy has a 39% success rate and faces a loss of 8.2% in her yearly returns. When recommending NKE, Murphy loses 2.6% in average profits on the stock.

TipRanks analytics exhibit NKE as a Buy. Based on 24 analysts polled in the last 3 months, 16 rate a Buy on NKE, while 8 maintain a Hold. The consensus price target stands at $62.52, marking a nearly 21% upside from where the stock is currently trading.screen-shot-10-11-16-at-08-36-pm