Adidas: RBC maintains 'outperform' rating - TP E250

(CercleFinance.com) - On Monday RBC reiterated its 'outperform' rating on and E250 target price for adidas shares, citing recent investor concerns and the stock market pullback that accompanied them.


There is a growing consensus that earnings estimates for 2025 do not offer any pleasant surprises, which makes the stock less attractive, the broker explains in a note.

RBC believes that, although the group's EPS is expected to remain stable next year, there is upside potential, notably to possible market share gains (particularly in China).

The Canadian broker also points to the stock's discount to its main peers in terms of its EV/Sales multiple, the prospect of improved cash flow and the possibility of a resumption of share repurchases by 2026.

The broker believes that adidas boasts the best visibility in its sector, making it its best pick among sports equipment manufacturers (at the expense of Nike and Puma).


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