(CercleFinance.com) – The adidas stock lost nearly 2% in Frankfurt, while earlier in the day Credit Suisse reiterated its “underperformance” opinion on the stock (indicating that it preferred Puma and JD Sports) with a target of price lowered from 110 to 83 euros, having further reduced EPS by 18% for this year and next, to levels 30% and 45% below consensus.
‘Following the termination of its partnership with Yeezy, it finally became clear how much adidas depended on the brand’, underlines the broker, who also points out the impact of the normalization of profits in China on the margins of the equipment manufacturer. German sportsman.
“As a result, we believe the new standard for margins will be 5-6% and may well be lower as market conditions are challenging and new management attempts to rebuild the brand’s appeal,” continues -he.
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