adidas AG, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst John Kernan from TD Cowen maintained a Hold rating on the stock and has a €200.00 price target.
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John Kernan has given his Hold rating due to a combination of factors affecting adidas AG’s financial outlook. The valuation of the company’s stock is becoming more appealing, yet the current sales and EBIT margin trends suggest that the consensus estimates for FY26 might be overly optimistic. Despite a strong performance in Q2 with notable sales growth and margin expansion, the overall market positioning remains one-sided, with adidas being a popular long position among sell-side analysts.
Additionally, while there is potential for an improved outlook for FY25, Kernan remains cautious about the ambitious EPS and margin expansion assumptions for FY26. The competitive landscape, including pressure from Nike and emerging brands like Hoka and Skechers, as well as tariff concerns, contribute to this cautious stance. The high expectations for revenue growth and margin improvements are tempered by these challenges, leading to the Hold rating as Kernan anticipates a more balanced risk-reward scenario in the near term.
In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a €250.00 price target.