Adidas: Credit Suisse still a seller
(CercleFinance.com) - Credit Suisse reiterates its "underperform" rating on the Adidas share, while adjusting its target price from 193 euros to 198 euros, after increasing its FY operating profit assumption from 515 million to 556 million euros.
Pointing to higher inventories than expected in Q2, the broker says that it remains cautious about Adidas' ability to achieve its dual ambition of cleaning up excess inventory and rebuilding the brand's appeal in the second half of the year.
"With the shares on >30x 2021 PER, we believe they are discounting a much more rapid recovery in 2021 than is likely," Crédit Suisse adds in its report on the German sporting goods supplier.
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