adidas: Credit Suisse upgrades stock
(CercleFinance.com) - Credit Suisse said on Tuesday that it is upgrading its rating on adidas shares from "underperform" to "neutral," while increasing its corresponding target price from 255 euros to 295 euros.
In a research report, the broker said it has looked at two things that are considered to be promising for the group, i.e. the favourable effect of digitalisation in its business (regarding the Nike model) and the prospect of a possible brand recovery, an assumption that it says it is approaching more cautiously.
While adidas is scheduled to hold an investor day on 10 March to discuss its new five-year strategic plan, Credit Suisse does not see any immediate signs of improvement in brand appreciation, which justifies its "neutral" rating on the stock.
In late morning trading in Frankfurt, the share was down about 1%, albeit outperforming a greater fall in the market.
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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.
In a research report, the broker said it has looked at two things that are considered to be promising for the group, i.e. the favourable effect of digitalisation in its business (regarding the Nike model) and the prospect of a possible brand recovery, an assumption that it says it is approaching more cautiously.
While adidas is scheduled to hold an investor day on 10 March to discuss its new five-year strategic plan, Credit Suisse does not see any immediate signs of improvement in brand appreciation, which justifies its "neutral" rating on the stock.
In late morning trading in Frankfurt, the share was down about 1%, albeit outperforming a greater fall in the market.
Copyright (c) 2021 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.