Nike (NKE - Get Report) shares were rising considerably Wednesday in what has been an excellent year for the stock, but analysts suggest there's way more room to run. 

The stock popped 5.06% to $91.59 a share in premarket trading. 

Wall Street says the much stronger than expected earnings results are a trend for the future. First, let's get to the results. 

The Earnings

Nike's total revenue for the quarter rose 7% year-over-year to $10.66 billion, beating Wall Street estimates of $10.44 billion. Earnings per share rose 28% to 86 cents, beating analysts estimates of 70 cents. 

China revenue grew 27%, accelerating over last quarter's 22% result. Digital sales across geographies rose 42%. Nike faced currency headwinds, which were more than offset by higher than expected revenue. 

Nike saw its gross margin climb to 45.7% and its operating margin subsequently rise to above 14%. 

Why the Stock Can go Higher

Two analysts raised their price targets to levels suggesting strong upside from here. Stifel analyst Jim Duffy raised his price target on Nike to $106 per share from $96, with the new price target suggesting 15% upside. Wedbush Securities analyst Chris Svezia raised his price target to $100 from $96. 

The analysts said the solid results represent a trend that can not only remain, but improve in the future. Both analysts were encouraged by Nike's full-priced selling, which usually reflects strong brand strength. Duffy noted Nike's use of WeChat to drive strong digital sales in China. Svezia said "Nike continues to expand the market and drive consumer industry innovation." 

Moreover, Nike could possibly expand its margins from this point. The higher full priced selling, which is offsetting higher costs from tariffs and currency translation, was the catalyst raising margins. Duffy expects gross margins to return to 46% and for the operating margin to expand to the "mid teens," even after it beat expectations of 12% for the quarter. 

Nike shares are up 23.5%, outpacing the broader U.S. market, with a forward one-year earnings multiple at 26. 

Related. Nike Hits It Out of the Park