adidas: Berenberg downgrades stock, slashes TP
(CercleFinance.com) - On Tuesday Berenberg downgraded its rating on the adidas stock from "buy" to "hold", having slashed its target price for it from 255 euros to 160 euros.
While it recognises that adidas is a "strong brand" in an "interesting sector", the analyst said he is now too concerned about the German group's short- and medium-term business.
Berenberg points to numerous adverse factors beyond the sports equipment maker's control - primarily the disruptions in China, and a lot of work to be done to catch up with its main rivals, even despite the positive momentum generated by the "Own the Game" strategy.
Such uncertainties are exacerbated by the abrupt change in CEO, with the company likely to adjust its medium-term targets, analysts add.
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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.
While it recognises that adidas is a "strong brand" in an "interesting sector", the analyst said he is now too concerned about the German group's short- and medium-term business.
Berenberg points to numerous adverse factors beyond the sports equipment maker's control - primarily the disruptions in China, and a lot of work to be done to catch up with its main rivals, even despite the positive momentum generated by the "Own the Game" strategy.
Such uncertainties are exacerbated by the abrupt change in CEO, with the company likely to adjust its medium-term targets, analysts add.
Copyright (c) 2022 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.