Bernstein reiterates Adidas stock Outperform with EUR300 target

Published 06/03/2025, 09:06
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On Thursday, Bernstein analysts maintained their optimistic stance on Adidas AG (ETR:ADSGN) (ADS:GR) (OTC: ADDYY), reiterating an Outperform rating and a price target of EUR300.00. The endorsement comes amid positive signals from the market and the company’s own performance trends. The $45.87 billion market cap company has demonstrated strong momentum, with shares delivering a 27.63% return over the past year. According to InvestingPro analysis, the company currently appears fairly valued based on its proprietary Fair Value model.

Adidas (OTC:ADDYY) management has projected high single-digit percentage (HSD%) growth and an operating margin of 6-7% for the year, which aligns with Bernstein’s expectations set when they upgraded the stock earlier in 2025. The analysts believe that the guidance reflects a conservative approach by Adidas CEO Bjorn Gulden, suggesting that it leaves room for potential outperformance. With revenues of $25.1 billion in the last twelve months and two analysts recently revising earnings estimates upward, InvestingPro data suggests strong fundamentals supporting this outlook.

The firm’s confidence is bolstered by encouraging comments made during the earnings call, where Adidas executives expressed bullish sentiments about the brand’s trajectory. The company has not observed any volatility or weakness in its quarter-to-date trends in 2025, indicating a solid start to the year.

Retailers have also provided positive feedback, reinforcing the view that Adidas continues to maintain strong momentum in the market. This ongoing momentum is seen as a key factor in the sports apparel company’s performance as it moves forward in the new year.

Bernstein’s reaffirmation of the Outperform rating and price target reflects their belief in the strength and potential of Adidas stock. The analysts’ commentary underscores the expectation that Adidas is well-positioned to potentially exceed its own financial targets for the year.

In other recent news, Adidas has reported a 24% increase in its fourth-quarter revenues, reaching €5.97 billion, surpassing market expectations. The company’s gross margin expanded by 520 basis points to 49.8%, and it achieved an operating profit of €57 million, a significant turnaround from the €377 million loss in the same period the previous year. Analysts from Deutsche Bank (ETR:DBKGn) have responded to these results by raising their price target for Adidas to EUR300, maintaining a Buy rating, citing the brand’s growing popularity and robust earnings trajectory. Similarly, Bernstein analysts also kept an Outperform rating with a EUR300 target, highlighting strong growth in North America and significant contributions from the Yeezy brand.

In contrast, CFRA has maintained a Sell rating on Adidas, despite raising the price target from €150 to €195, due to concerns about the company’s high valuation compared to its peers. CFRA also noted that Adidas’s operating metrics still lag behind those of its largest competitors. Additionally, Adidas plans to cut up to 500 jobs at its German headquarters as part of an effort to simplify its structure, although the exact number of job cuts has not been officially confirmed. CEO Bjørn Gulden acknowledged the company’s strong momentum and expressed optimism for continued growth, despite ongoing macroeconomic uncertainties. Adidas plans to release its final financial results for 2024 and provide guidance for 2025 on March 5, 2025.

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