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Investing.com -- JPMorgan has placed Adidas (ETR:ADSGN) on its Positive Catalyst Watch ahead of the company’s third-quarter results in late October, while downgrading Puma (ETR:PUMG) to Underweight, citing confidence in the former’s earnings drivers and caution over the latter’s slow-moving turnaround
The German sportswear giant remains well-positioned despite investor concerns around slowing momentum in its Terrace franchise, rising tariffs in the U.S., and a potential Nike (NYSE:NKE) comeback.
Shares are down about 30% this year, which JPMorgan analyst Wendy Liu argues has reset expectations.
Liu sees upside from running and apparel, where sales accelerated 25% and 17% respectively in the second quarter, and from the 2026 World Cup, which could add more than €1 billion to revenues.
“We think the upcoming Q3 could be a catalyst for the shares to re-rate, especially as management gets more visibility on the orderbook and reassures on the margin outlook,” the analyst said.
The price target was trimmed to €236 from €250, but the stock remains rated Overweight.
Puma, meanwhile, faces what JPMorgan called a “re-set” year under its new chief executive.
Liu warns that clearing excess inventories, fixing its distribution network, and developing a star product could take time, with management itself acknowledging risks.
Puma’s Speedcat launch underperformed, promotions have been heavy, and visibility of other franchises remains limited.
JPMorgan now expects the company to stay loss-making in 2025 and 2026, and thus downgraded the stock to Underweight from Neutral and cut its price target to €16 from €21.
“We see additional medium- to long-term risks of Puma losing its edge in an increasingly competitive sporting goods market,” the analyst wrote.
On Holding AG (NYSE:ONON), by contrast, retained its Overweight rating with a $71 price target, as JPMorgan sees continued product momentum and expansion in China offsetting tariff headwinds.
JD Sports Fashion (LON:JD) was kept at Neutral with a slightly lower price target of £0.90, reflecting execution risks and exposure to U.S. consumer demand.
Overall, JPMorgan said macro volatility and U.S. tariffs continue to weigh on the sector, but stressed that identifying “good surfers” — companies with resilient product and earnings drivers — is now more important than trying to time the next market wave.