Adidas: share price rises on Morgan Stanley's double upgrade

(CercleFinance.com) - Adidas shares were by far the biggest gainers on the DAX index on Monday in the Frankfurt, following a double upgrade from Morgan Stanley.


The broker's rating on the sports equipment maker's shares was raised directly to 'overweight' from 'underweight', with a target price raised from E175 to E235.

The analyst praises the welcome given to the group's latest collections, as well as the expansion of the range surrounding models that had previously sold well, such as the SL72 trainers.

Morgan expects its improved performance to continue with the recent partnership with Anthony Edwards in basketball and the prospect of the forthcoming Euro 2024 soccer tournament.

It adds that adidas could also benefit from the recent bout of weakness at Nike, where the pace of innovation has slowed, but also from its more pragmatic approach to pricing.

The analyst predicts an inflection point in sales in H2, leading it to raise its sales forecasts for 2024, 2025 and 2026.

At noon, the sporting goods manufacturer's shares were up 4.2%, compared with a gain of around 0.7% for the DAX index.


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