Adidas: Credit Suisse confirms rating

(CercleFinance.com) - After Adidas published its Q1 2020 results, Crédit Suisse cut its target price for the share to 188 euros (from 199 euros previously), while confirming its underperform rating.


"1Q results again demonstrated that the drop-through from sales declines is greater than anticipated, and we now forecast a loss of almost E300m for 2Q".

"We forecast a 2Q sales decline of 43%, and even with some opex savings forecast an EBIT loss of -9.5% vs +11.7% the prior year".

"We are cutting 2020 EPS forecasts by another 64% and 2021 by 10% (9.6% EBIT margin) given the likelihood of excess inventory in 1H 2021 and likelihood of adverse buying terms on lower volumes," Crédit Suisse adds.


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