Adidas: Credit Suisse upgrades to buy; raises target price
(CercleFinance.com) - Credit Suisse has upgraded its former neutral rating on German sports equipment manufacturer Adidas to buy ("outperform").
Alongside this upgrade, it has raised its target price by nearly 24%, from 180 euros to 223 euros.
Indeed, the broker's research report points out that the Adidas share "marked time" last year, with the stock's discount relative to its US rival Nike having reappeared, to reach about 13% in terms of P/E, and 40% in terms of enterprise value/sales.
That said, "We believe that Adidas can deliver significantly higher margins over the medium term," argues Credit Suisse, which relies on the strength of the brands of the group that should enable growth to remain strong. The report adds that Adidas' presence on the social photo sharing network, Instagram " with total engagement on Instagram 5x that of Nike."
In short, according to its analysts, the Adidas group and share represent solid potential, particularly over the medium term.
Copyright (c) 2018 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.
Alongside this upgrade, it has raised its target price by nearly 24%, from 180 euros to 223 euros.
Indeed, the broker's research report points out that the Adidas share "marked time" last year, with the stock's discount relative to its US rival Nike having reappeared, to reach about 13% in terms of P/E, and 40% in terms of enterprise value/sales.
That said, "We believe that Adidas can deliver significantly higher margins over the medium term," argues Credit Suisse, which relies on the strength of the brands of the group that should enable growth to remain strong. The report adds that Adidas' presence on the social photo sharing network, Instagram " with total engagement on Instagram 5x that of Nike."
In short, according to its analysts, the Adidas group and share represent solid potential, particularly over the medium term.
Copyright (c) 2018 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.