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Investing.com - Jefferies has upgraded Adidas AG (OTC:ADDYY) from Hold to Buy while lowering its price target to EUR220.00 from EUR250.00.
The German sportswear giant’s stock has experienced a significant devaluation in recent weeks and months, according to Jefferies’ analysis.
Despite the market’s negative reaction, Jefferies’ due diligence across various product categories confirms that Adidas has increasingly diverse growth drivers supporting its business.
The research firm specifically addressed investor worries about Adidas’ potential over-reliance on its Terrace category as it approaches maturity, stating these concerns "seem overdone."
Jefferies noted that Adidas trades at a historically low price-to-earnings ratio of approximately 16x based on 2026 estimates, suggesting the market is overlooking "intriguingly positive implications" of tariffs and a weakening dollar on the company’s competitive position.
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