(CercleFinance.com) – Morgan Stanley moved to an ‘overweight’ recommendation on adidas stock on Monday, compared to ‘underweight’ until now, with a price target raised from 175 to 235 euros.
In a research note, the analyst welcomes the favorable reception reserved for the group’s latest collections, as well as the expansion of the range surrounding models that had previously sold well, such as the SL72 sneakers.
Morgan says he expects his performance to continue to improve with the recent partnership with Anthony Edwards in basketball and the prospect of the upcoming Euro 2024 football tournament.
The professional adds that adidas could also benefit from the recent bout of weakness at Nike, where the pace of innovation has run out of steam, but also from its more pragmatic approach in terms of price.
The analyst therefore foresees an inflection point in terms of its sales in the second half of the year, which leads it to revise upwards its turnover forecasts for 2024, 2025 and 2026.
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