(News Bulletin 247) – AlphaValue has announced that it has raised its price target on adidas to 140 euros (against 133 E) before the announcement of the results for the 2nd quarter of 2023.
The research department, which maintains a ‘lighten’ recommendation on the title, explains, however, that due to weak consumer demand and excessive stocks in the sporting goods market, adidas will experience a slowdown. sales momentum as well as a (further) sharp deterioration in margins year-on-year.
‘We expect sales (excluding currency effects) to decline -7% and EBIT margin to -750bps year-over-year’ says analysts
‘ The bad news is not all out yet. The group’s objectives for the 2025 financial year are in our opinion far too ambitious and still need to be updated’ adds AlphaValue.
“We are reducing our EBIT margin projection from 6.0% to 5.0% for FY2024 as margin recovery may take longer.”
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