adidas: Wedbush Securities raises target price
(CercleFinance.com) - Wedbush Securities has raised its target price for the adidas share from 218 euros to 250 euros ahead of the German sports apparel maker's results on 8 August.
The US broker maintains, however, its "neutral" rating on the share, citing "premium valuation" despite increasing competition and risks.
"There is likely little room for further multiple expansion with shares trading at a about 20% premium to historic levels (compared to approximately 7% for Nike)," it said.
Wedbush pointed out that other brands, such as Nike, Puma, and Vans comparably outperform, meaning that adidas' current share price may overestimate upside potential.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The US broker maintains, however, its "neutral" rating on the share, citing "premium valuation" despite increasing competition and risks.
"There is likely little room for further multiple expansion with shares trading at a about 20% premium to historic levels (compared to approximately 7% for Nike)," it said.
Wedbush pointed out that other brands, such as Nike, Puma, and Vans comparably outperform, meaning that adidas' current share price may overestimate upside potential.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.