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Investing.com - JPMorgan has lowered its price target on Adidas AG (ETR:ADS) (OTC:ADDYY) to EUR236.00 from EUR250.00 while maintaining an Overweight rating on the stock. According to InvestingPro data, the stock is currently trading near its 52-week low of $94.33, with analyst targets ranging from $105 to $150.
The investment bank cited the need for Adidas to find its next driver of earnings growth following several years of excellent performance led by its Terrace collection, which includes the Samba, Gazelle, and Spezial footwear lines.
JPMorgan expects disciplined product portfolio management and cost control to support EBIT margin expansion in FY25 and FY26, with additional help from moderating external headwinds, particularly as foreign exchange effects should become a tailwind.
The firm believes that with Adidas shares down 30% year-to-date, expectations have been properly reset and the risk/reward profile is attractive at current valuation levels.
JPMorgan has placed Adidas on Positive Catalyst Watch ahead of the company’s Q3 2025 results scheduled for October 29, noting that the upcoming earnings report could serve as a catalyst for the shares to re-rate as management gains more visibility on the orderbook and reassures investors on the margin outlook.
In other recent news, Adidas is preparing to announce its second-quarter results, with Bernstein reiterating an Outperform rating on the company’s stock. The investment firm has set a price target of EUR300.00 for Adidas. The company has maintained its full-year guidance, expecting high-single-digit percentage growth in total revenue and a margin between 6.5% and 7%. These developments were shared during a recent investor relations call with sell-side analysts. The upcoming earnings report is scheduled for July 30. Investors will be keen to see if Adidas meets its projected growth and margin targets.
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