adidas mens tracksuit High hopes among analysts ahead of Q3 update
Deutsche Bank has upgraded its target for Adidas AG (ETR:ADS) to 170 per share, from 165, with analyst Adrian Rott saying the sportswear and apparel group is in a comfortable position.
“After a number of beats raises, some more controversial than others, it was about time for the cadence of news to slow down,” Rott said in a note.
Rott highlighted that industry data and UBS’s ‘channel checks’ suggests the group’s three key markets Europe, China and North America are all performing well.
Deutsche estimates 5.29bn of sales for the third quarter, versus 4.75bn in the 2015 comparative and a consensus forecast of 5.36bn, and it expects net profit of 386mln for the quarter (against 311mln Q3 2015 and a consensus estimate of 391mln).
The German bank rates Adidas as a ‘buy’. Elsewhere, Macquarie tips the stock to ‘outperform’ and analyst Andreas Inderst says there’s consensus is too conservative and could be upgraded after Adidas updates on its third quarter performance.
“We expect a good Q3 performance based on healthy global market share gains by brand adidas,” the Macquarie analyst said in a note.
He added: “We think FY16 upgrades are already priced in the shares.
“What are not yet fully priced in are the strong prospects for the years ahead. Hence, key focus should be on initial comment by new management for FY17 and the disposal plan for the non core business.”
Adidas is expected to provide a third quarter update later this week.
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write up may generate.
You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security,
portfolio of securities, transaction, investment strategy, or other matter.
You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.
From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously,
previously published information and data may not be current and should not be relied upon.