Adidas shares hits 3-month high on Jefferies optimism
Adidas shares are one of the top performers on the DAX index Friday morning on the Frankfurt Stock Exchange, as the German sportswear giant benefits from a bullish outlook issued by Jefferies analysts.
In late morning trading the stock was up 2.5% at over €154.6, its highest level since late February. Meanwhile, the DAX is down 0.5%.
Jefferies reiterated its "buy" rating on the stock this morning, with a target price of €190, implying 28% upside potential.
From vintage fashion to running, product momentum accelerates
In a note titled "From suspicion... to execution... to redemption," the US broker noted a renewed investor appetite for repositioning in the stock.
While acknowledging that the Middle East crisis and its impact on inflation present additional headwinds for the group, particularly in Europe, the broker stated that it is encouraged by the acceleration of the sportswear manufacturer's product pipeline, a dynamic that warrants a closer look at the shares.
Beyond the global rollout of the Originals retro range following its success in China, the strengthening of the running portfolio justifies investor interest in the case, Jefferies believes, especially given a 2027 P/E ratio of just 12.5x.
adidas AG is one of the world leaders in the design, manufacturing and marketing of sports equipment and articles. The group's products are sold primarily under the following brands: adidas, TaylorMade and Reebok. Net sales (before intragroup eliminations) break down by family of products as follows:
- shoes (57.4%);
- clothing (35.3%);
- sports equipment (7.3%): golf equipment (golf clubs, balls, gloves, metal clubs, etc.; No. 1 worldwide; TaylorMade and Maxfli), bags, balls, etc.
At the end of 2025, the products are marketed through a network of 2,022 stores worldwide.
Net sales are distributed geographically as follows: Europe (33%), North America (20.5%), China (14.7%), Latin America (11.8%), Japan and South Korea (5.9%), and Others (14.1%).
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