Analyst Alison Fok of DBS maintained a Buy rating on adidas AG (0OLD – Research Report), with a price target of €285.00.
Alison Fok has given her Buy rating due to a combination of factors that indicate strong future growth prospects for adidas AG. The company is expected to see high single-digit growth in currency-neutral sales by 2025, with double-digit growth anticipated from its core brand, particularly in North America, Greater China, Emerging Markets, and Latin America. This growth is supported by the popularity of adidas’s footwear models and the introduction of new products targeting both lifestyle and performance segments.
Additionally, adidas is investing in its direct-to-consumer (DTC) channels and focusing on strategic product categories such as football, running, and outdoor activities, which are expected to drive significant sales growth. The company’s strategic plan, “Own the Game,” aims for over 95% of sales growth from these categories and projects the DTC channel to account for 20% of total net sales by 2025. The consistent revenue and EBITDA margin growth, alongside an adjusted EPS growth forecast that surpasses industry averages, further supports the positive outlook, leading to a target price of EUR285 per share.
In another report released today, Telsey Advisory also maintained a Buy rating on the stock with a €290.00 price target.
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