adidas: stock down as analyst cuts target price
(CercleFinance.com) - In its comments, published this morning, RBC said it expects a "challenging" fourth quarter for the German sports equipment maker.
"We expect supply disruption issues to 'bottom out' in 4Q21 for adidas however also now expect spillover into 1Q22 as suggested by Nike commentary," the broker says.
"Adopting a broadly similar shape for Nike's revised guidance into our adidas assumptions implies a fairly muted 4Q21 and 1Q22 due to lack of product supply (particularly footwear) in N America and EMEA and ongoing gross margin pressure," RBC continues.
The broker has therefore reduced its target price for adidas shares from 340 euros to 330 euros, while maintaining its neutral rating on the stock. The market seems to be frowning on it today, however: it is currently down over 3% in Frankfurt, underperforming the market (-1.2% at lunchtime).
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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.
"We expect supply disruption issues to 'bottom out' in 4Q21 for adidas however also now expect spillover into 1Q22 as suggested by Nike commentary," the broker says.
"Adopting a broadly similar shape for Nike's revised guidance into our adidas assumptions implies a fairly muted 4Q21 and 1Q22 due to lack of product supply (particularly footwear) in N America and EMEA and ongoing gross margin pressure," RBC continues.
The broker has therefore reduced its target price for adidas shares from 340 euros to 330 euros, while maintaining its neutral rating on the stock. The market seems to be frowning on it today, however: it is currently down over 3% in Frankfurt, underperforming the market (-1.2% at lunchtime).
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.