(News Bulletin 247) – Royal Bank of Canada announced on Friday that it had raised its price target on adidas from 111 to 130 euros, while maintaining its ‘performance in line with the sector’ opinion on the stock.
In a note released early in the morning, the Canadian broker believes that the file seems to him “well calibrated” at current price levels.
On the one hand, RBC says it is aware of the arguments in favor of the stock, whether in terms of improved execution, the quality of its management team or the prospect of improved products and a reorganization of distribution activities with a view to regaining market share.
But the broker also believes that the effects of the ongoing recovery will not materialize before mid-2024 and that the recovery in margins will occur at a slower pace than the market currently expects.
He also judges that the sports equipment market has now become ‘more competitive’ and favors in this perspective the titles Nike and Puma, on which he displays an ‘overperformance’ opinion.
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