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 €201.00 price target.
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John Kernan has given his Hold rating due to a combination of factors including adidas AG’s current financial performance and future projections. The company has shown strong execution with a notable increase in revenue and EBIT margin in the third quarter, yet there is caution regarding the upcoming fiscal year’s estimates. The management’s guidance suggests a potential contraction in gross margin for the fourth quarter, despite an overall positive outlook for the fiscal year.
While adidas AG has demonstrated impressive growth, particularly with its EBIT margin expansion, Kernan remains cautious about the ambitious consensus estimates for fiscal year 2026. The projections for EBIT margin and sales growth are high, and while management has executed well, there is uncertainty in modeling future fiscal years. This combination of strong current performance but uncertain future projections has led Kernan to maintain a Hold rating on the stock.
In another report released yesterday, Goldman Sachs also maintained a Hold rating on the stock with a €215.00 price target.