Hansen, Mueller Industries director, sells $105,710 in stock
Investing.com - TD Cowen has raised its price target on Adidas AG (OTC:ADDYY) to EUR201.00 from EUR190.00 while maintaining a Hold rating on the stock. According to InvestingPro data, analyst targets range from $105 to $150, with three analysts recently revising their earnings estimates upward. The stock currently trades at $109.66 and appears undervalued based on InvestingPro’s Fair Value analysis.
The firm cited strong execution by the German sportswear company, though it views consensus estimates for fiscal year 2026 as "a bit lofty."
TD Cowen noted that Adidas’ fiscal year outlook aligns with consensus expectations, with the financial model showing high incremental margin and EBIT dollars increasing 17% year-over-year in the third quarter.
The firm pointed out that implied fourth-quarter guidance, which represents only 5% of full-year EBIT, likely suggests gross margin contraction, despite management continuing to execute above plan.
Current consensus estimates assume Adidas will expand its EBIT margin by 220 basis points year-over-year from fiscal year 2025 estimates to 10.2% in fiscal year 2026, approaching the brand’s all-time peak excluding Yeezy performance.
In other recent news, Adidas reported strong third-quarter results, with total revenue reaching €6.63 billion, marking a 12% increase at constant FX, excluding Yeezy. The company highlighted broad-based double-digit growth across markets, product divisions, categories, and channels, leading to an improved full-year outlook. Despite these positive results, JPMorgan adjusted its price target for Adidas to EUR234, citing foreign exchange headwinds, while maintaining an Overweight rating. Meanwhile, BTIG initiated coverage on Adidas with a Neutral rating due to concerns over U.S. tariff policies impacting growth prospects. UBS maintained a Buy rating and a EUR274 price target, noting new franchises are offsetting the maturing Terrace fashion trend, which is a significant contributor to sales. Piper Sandler also reiterated its Overweight rating with a €200 price target, pointing out that Adidas shares have shown recovery but still trade below the footwear industry average. These developments reflect a mix of optimism and caution among analysts regarding Adidas’s future performance.
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