Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Monday, Piper Sandler initiated coverage on Adidas AG (ETR:ADSGN) (ADS:GR) (OTC: ADDYY) with an Overweight rating and a price target of EUR265.00. The research firm highlighted Adidas (OTC:ADDYY)’ strong performance and potential for continued growth, noting the company’s significant earnings per share (EPS) increase projected for the next two years. According to InvestingPro data, Adidas boasts a perfect Piotroski Score of 9, indicating excellent financial strength, with a robust gross profit margin of 51%.
Adidas has demonstrated robust top and bottom-line momentum going into 2025, with high teens constant currency sales growth in the first quarter of 2025 marking an acceleration over a two-year period. North America has reported double-digit growth for two consecutive quarters. While current InvestingPro data shows the stock trading at higher multiples with a P/E of 36.12x and EV/EBITDA of 19.4x, the company’s strong revenue growth of 12.8% and Fair Value analysis suggest potential upside. Get access to 7 more exclusive ProTips and comprehensive valuation metrics with InvestingPro.
The analysts pointed out that with the United States accounting for 20% of Adidas’ sales, the company has limited exposure to tariffs. Based on current rates, they estimate only a 1% impact to the cost of goods sold (COGS), which they believe is the lowest among the companies they cover.
Despite the positive outlook, Adidas stock has experienced a decline, resetting lower after the first-quarter results of 2025 were released last week. The stock has fallen 13% year-to-date, underperforming the S&P 500. This downturn is attributed to a compression in multiples, affecting both EV/Sales and EV/EBITDA ratios. However, sell-side estimates for the year to date have seen a slight increase in both sales and profitability forecasts.
In other recent news, Adidas reported a 17% growth in underlying sales for the first quarter, surpassing the consensus forecast of 15% and achieving an EBIT margin of 9.9%. The company’s gross margin also improved significantly, with a 160 basis points increase. Despite the challenges posed by tariffs and the global economic environment, Adidas maintained its full-year and medium-term forecasts. Analyst firms have reacted to Adidas’s performance with various ratings changes. Bernstein maintained an Outperform rating, highlighting the brand’s strong demand across regions and product categories. BofA Securities upgraded Adidas from Neutral to Buy, citing superior sales growth and reduced tariff risks, while Baird also upgraded the stock to Outperform, noting the company’s global brand momentum and minimal exposure to U.S. tariffs. HSBC upgraded Adidas to Buy, despite trimming its price target, emphasizing potential market share gains in a challenging economic climate. Meanwhile, Berenberg initiated coverage with a Hold rating, acknowledging Adidas’s product line strength but expressing caution regarding ambitious financial targets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.