(CercleFinance.com) – Societe Generale on Monday raised its recommendation on adidas shares, going from ‘sell’ to ‘hold’ with a target revised upwards from 87 to 119 euros.
In a brief research note, the design office justifies its raising by the confirmation, last Friday, of negotiations with the current boss of Puma so that he takes over the general management of the group.
From SG’s point of view, Bjorn Gulden’s departure would be a ‘manageable’ event at Puma, but a ‘clearly favorable’ element for adidas, which is now facing market losses, the fallout from the affair Yeezy and the charges of forced labor in China.
The analyst recalls that since his arrival at the head of Puma in 2013, Bjorn Gulden has enabled the sports equipment manufacturer to reconnect, outside the Covid period, with double-digit growth rates at constant exchange rates.
SocGen warns, however, that due to the existence of non-competition clauses, his arrival could take time, perhaps even more than a year as was the case when Daniel Grieder arrived at Hugo. Boss from VF Corp.
The professional also expects a difficult recovery for adidas, even in the event of the appointment of Bjorn Gulden, due to the particularly long product development times that characterize the sector and the importance of the structural problems to which adidas must today to face.
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