Background of the Rating
- Target Price: The target price of 282 euros has recently been lowered from a previous target of 289 euros, attributed to recent developments in the foreign exchange markets. Despite this adjustment, the rating remains ‘Buy’, indicating analysts’ confidence in Adidas’s future prospects.
- Business Development: Following preliminary figures for the first quarter, analyst Robert Krankowski has become even more confident in the Herzogenaurach sportswear manufacturer. Some investors may wonder why Adidas has not raised its earnings before interest and taxes (Ebit) forecast. However, this is explained by the uncertainty surrounding tariffs and the typically conservative approach of management.
- Market Positioning: Adidas is considered better positioned than its competitors to face challenges such as tariffs, margins, and demand. This strength could lead to a positive company development in the long term.
Importance for Investors
The ‘Buy’ rating and the target price of 282 euros could increase investor interest in Adidas, especially if they pay attention to the positive business developments in the first quarter. The management’s conservative forecast stance might be interpreted as a sign of a cautious but solid strategy that could lead to stable returns in the long term.
Overall, UBS’s rating shows that Adidas is regarded as an attractive investment opportunity despite the current market challenges.