Adidas: Wedbush still on hold, raises TP

(CercleFinance.com) - On Wednesday Wedbush Securities raised its target price for adidas shares from E193 to E200 (cp: E220, +8.
6%), while sticking to its 'neutral' rating on the stock.

The broker believes that the solid business update published the previous evening by the German sports equipment manufacturer shows that it is benefiting from a business momentum that is tending to accelerate.

Wedbush believes that the group should particularly benefit from the improvement that is now underway in the supply chain, particularly in North America.

While it applauds the work done by new CEO Bjorn Gulden and his team with a view to the next turnaround, the analyst believes that much of the good news is now priced in, with the stock trading at around 75x 2024e EPS and 50x 2025e EPS.

As such, Wedbush explains that it prefers to wait before taking advantage of a better entry point on the stock.


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