Adidas: Credit Suisse cuts target price
(CercleFinance.com) - Credit Suisse is taking a much more cautious stance than Adidas management due to the impact of the coronavirus on sales outside China in FY2020.
It has hence cut its EPS guidance by 31%.
The broker has reduced its target price for the share to 230 euros (from 300 euros) and confirms its neutral rating on it.
"All other markets will be heavily impacted in 2Q (-9%), especially in Europe with the potential for most major sporting events to be cancelled," Crédit Suisse says.
"We forecast EBIT margins of 8.5% (-640bp) in 1Q, giving a E451m Y/Y decline and 7.7% (-400bp) in 2Q, a E270m Y/Y decline," it adds.
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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.
It has hence cut its EPS guidance by 31%.
The broker has reduced its target price for the share to 230 euros (from 300 euros) and confirms its neutral rating on it.
"All other markets will be heavily impacted in 2Q (-9%), especially in Europe with the potential for most major sporting events to be cancelled," Crédit Suisse says.
"We forecast EBIT margins of 8.5% (-640bp) in 1Q, giving a E451m Y/Y decline and 7.7% (-400bp) in 2Q, a E270m Y/Y decline," it adds.
Copyright (c) 2020 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.