Bernstein reiterates Outperform rating on Adidas stock ahead of Q2 results

Published 01/07/2025, 14:04
Bernstein reiterates Outperform rating on Adidas stock ahead of Q2 results

Investing.com - Bernstein has reiterated an Outperform rating and EUR300.00 price target on Adidas AG (OTC:ADDYY), currently trading at $117.02, ahead of the company’s second-quarter results scheduled for July 30. According to InvestingPro data, analysts’ consensus remains bullish with price targets ranging from $103 to $165, suggesting potential upside.

The German sportswear giant maintains its full-year guidance of high-single-digit percentage total growth and a 6.5-7% margin, according to information shared during a recent investor relations call with sell-side analysts. The company’s strong financial health is evidenced by its perfect Piotroski Score of 9, as reported by InvestingPro, which offers 5 additional key insights about Adidas’s financial position.

Adidas is working to diversify its product mix beyond its popular Terrace line, scaling newer launches including Low Profile, Superstar, SL72, Lifestyle Running, and apparel offerings, while performance products in Running and Football categories continue to show strong momentum.

The company reported that over 200 retailers attended meetings at its headquarters in May, representing a 15-20% year-over-year increase, while 500 attended a World Cup activation event in Los Angeles, with both events generating positive feedback.

Account meetings for Spring/Summer 2026 collections have been "very successful," suggesting a strong future order book for the sportswear manufacturer as it prepares for increased football-related product innovation ahead of next year’s World Cup.

In other recent news, Adidas AG has reported significant developments that are capturing the attention of investors. The company announced a 17% currency-neutral growth in underlying sales and an EBIT margin of 9.9% for the first quarter, surpassing the consensus forecast. Despite this strong performance, Adidas did not update its guidance, though further details are anticipated in the upcoming earnings call. In terms of analyst ratings, Citi maintained its Buy rating with a price target of €290.00, even after a customer data breach was confirmed. Piper Sandler initiated coverage with an Overweight rating and a price target of EUR265.00, noting Adidas’s strong earnings per share increase projected over the next two years.

BofA Securities upgraded Adidas from Neutral to Buy, albeit with a reduced price target of EUR260.00, citing strong sales growth and operational efficiencies. Additionally, Baird upgraded the stock rating to Outperform, setting a new price target of EUR240.00, following a 25% drop from its highs. The firm pointed to Adidas’s global brand momentum and minimal exposure to U.S. tariffs as positive factors. Bernstein maintained its Outperform rating with a $162.25 target, highlighting Adidas’s robust performance amidst a turbulent market. These recent developments reflect a mix of positive earnings results and strategic analyst ratings, indicating varied perspectives on Adidas’s future growth potential.

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