adidas: Goldman Sachs downgrades stock
(CercleFinance.com) - Goldman Sachs on Tuesday downgraded adidas shares to "neutral" (from "buy"), reducing its target price for them from 200 euros to 170 euros.
In its report on European retailers, the broker justifies its decision by the particularly gloomy future for the group in terms of demand.
Goldman says that the German sports equipment maker will face economic headwinds in the near term, with consumer confidence in Europe at an all-time low and the prospect of continued lockdowns in China until mid-2023.
Nevertheless, the analyst notes that his price target still shows 30% upside potential and points out that since he added adidas to his Buy List in February 2016, the share price has risen by 41%, compared with a 17% decline for the STOXX Europe 600 Retail sector index.
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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 its report on European retailers, the broker justifies its decision by the particularly gloomy future for the group in terms of demand.
Goldman says that the German sports equipment maker will face economic headwinds in the near term, with consumer confidence in Europe at an all-time low and the prospect of continued lockdowns in China until mid-2023.
Nevertheless, the analyst notes that his price target still shows 30% upside potential and points out that since he added adidas to his Buy List in February 2016, the share price has risen by 41%, compared with a 17% decline for the STOXX Europe 600 Retail sector index.
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.