Adidas: Credit Suisse cuts TP, with concerns about Asia
(CercleFinance.com) - Credit Suisse maintains its "neutral" rating on Adidas share, while reducing its target price for them from 310 euros to 300 euros.
The analyst also reduced its EPS forecast for 2021 and 2022 by 5.5%, mainly due to the ten-week shutdown of production in Vietnam, which is home to 28% of the group's total production.
Although production is now kicking off again, the broker believes that the Vietnamese episode will probably affect Adidas' revenues until Q2 2022 (around E250m/quarter).
Credit Suisse also expresses concern that the Chinese market will slow down in Q3 2021, a situation that could drag on due to the pandemic and political tensions - including anti-Western sentiment, linked to US concerns over the fate of Uighurs.
Even so, the share is up over 1% in afternoon trading today, outperforming a slightly negative market in Frankfurt.
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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.
The analyst also reduced its EPS forecast for 2021 and 2022 by 5.5%, mainly due to the ten-week shutdown of production in Vietnam, which is home to 28% of the group's total production.
Although production is now kicking off again, the broker believes that the Vietnamese episode will probably affect Adidas' revenues until Q2 2022 (around E250m/quarter).
Credit Suisse also expresses concern that the Chinese market will slow down in Q3 2021, a situation that could drag on due to the pandemic and political tensions - including anti-Western sentiment, linked to US concerns over the fate of Uighurs.
Even so, the share is up over 1% in afternoon trading today, outperforming a slightly negative market in Frankfurt.
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.