Bernstein analysts see Adidas on a path to recovery and sustained growth, driven by popular footwear and new product lines.
Bernstein raised its price target for Adidas to €300 per share from €212, citing a strong growth trajectory and improved market positioning. The firm believes Adidas is poised for a multi-year winning streak, projecting a 70% EPS compound annual growth rate (CAGR) over the next two years. This growth is expected to be driven by lifestyle footwear and apparel, particularly the Samba and Gazelle lines.
Bernstein also notes the company's management is launching new franchises in these categories, which could contribute approximately €5 billion to incremental growth from 2024 to 2026. The firm forecasts this growth will lead to substantial margin increases, with an estimated EPS of €11.82 by 2026. Despite positive indicators, Bernstein believes the market is undervaluing Adidas, with the stock trading at less than 20 times FY26 EPS compared to a 25x average in pre-COVID years.
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