TD Cowen analyst John Kernan has maintained their neutral stance on 0OLD stock, giving a Hold rating yesterday.
John Kernan has given his Hold rating due to a combination of factors influencing adidas AG’s current and future performance. The company has shown strong brand momentum and operational improvements, as evidenced by its ability to exceed initial guidance for FY24 and maintain a consistent pace in marketing and innovation. However, while management’s outlook for FY25 is optimistic with expectations of double-digit sales growth and improved EBIT margins, the valuation already reflects this positive sentiment.
Despite the bullish tone from management and the promising product pipeline across various regions and sports categories, further valuation expansion seems contingent on external data points and upcoming financial results. The company’s ability to meet or exceed its ambitious targets, such as achieving a 10% EBIT margin by FY26, will be crucial. Therefore, Kernan’s Hold rating suggests a cautious approach, acknowledging both the potential for growth and the existing challenges in the macroeconomic and geopolitical landscape.
In another report released yesterday, Goldman Sachs also maintained a Hold rating on the stock with a €280.00 price target.
Questions or Comments about the article? Write to editor@tipranks.com