On Wednesday, RBC Capital Markets adjusted its financial outlook for Adidas AG (ETR:ADSGN) (ADS:GR) (OTC: ADDYY), raising the sportswear giant's share price target from EUR200.00 to EUR230.00. The firm reiterated its Outperform rating, signaling confidence in Adidas (OTC:ADDYY)'s future performance.
RBC Capital's assessment highlights Adidas's revenue potential for the fiscal year 2024, suggesting it stands out within the sporting goods sector. The analyst expects Adidas to experience an acceleration in growth that would surpass its rival Nike (NYSE:NKE) for the first time in half a decade, signifying a pivotal moment for the company.
The analyst's optimism is partly driven by Adidas's strong product cycle, including the Terrace collection, which has shown increasing popularity as indicated by Google (NASDAQ:GOOGL) Trends data for both the brand and its key products. A promising Lifestyle product pipeline is also expected to contribute to revenue growth that could exceed market expectations for the fiscal year 2025.
Additionally, the analyst notes the positive impact of Adidas's management, praising their energy and clarity. This management approach, along with the anticipated mid-single digit increase in EBIT (earnings before interest and taxes), underpins the decision to reinforce the Outperform rating with an elevated price target of EUR230.00.
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