Messi’s MLS stint contributes to Adidas’ growth story that will help it tack on about $7 billion in market value, according to Bernstein analysts.
Lionel Messi’s high-profile migration to the U.S. will help justify tens of billions of dollars in added market capitalization for Adidas, according to Bernstein analysts, upgrading its rating for Major League Soccer’s apparel partner ahead of Messi’sFIFA via Getty ImagesIn a Sunday note to clients, analysts led by Aneesha Sherman upgraded Adidas from a hold to a buy, raising their price target for the German apparel giant by 23% to $112.
That implies 30% upside for Adidas from its $86 share price at Friday’s market close, projecting the stock to hit a 14-month high and for the company to tack on roughly $10 billion to its market value. Bernstein said Messi joining MLS is “likely to drive U.S. market share” for Adidas, citing the brand’s sponsorship of the superstar, the American soccer league and Inter Miami’s celebrity co-owner David Beckham, as well as Inter Miami’s astronomical growth on social media in the wake of Messi’s announcement.
The Messi-related upside was just one component of Sherman’s bullishness for Adidas, as also contributing to the upgrade were above-consensus profit estimates thanks to improving margins and signs of increased popularity for the brand in China as well as a steadiness in the popularity of its former Yeezy line.5%. That’s how much Berlin-listed shares of Adidas jumped Monday, a bump largely tied to Bernstein’s bullishness.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Is Lionel Messi's Inter Miami decision a Beckham-level 'game-changer' for MLS?Lionel Messi's Miami adventure will begin at what was once an MLS gravesite. Some 22 years ago, long before the GOAT decided to take his talents to South Beach, before he'll arrive to lift an entire league and perhaps American soccer more broadly, that league was crumbling. It nearly folded in 2001. It survived, but its first Miami club, the Fusion, dissolved. The league's future, if it even had one, looked bleak.
Read more »
Alexi Lalas Says Inter Miami Could Become 'MLS Super Club Death Star' After MessiU.S. soccer legend Alexi Lalas tells TMZ Sports after adding Lionel Messi, the team is already being linked to other international superstars, and he could see Inter Miami becoming a 'super club Death Star!'
Read more »
The recycling idea at Levi's, Adidas, Zara to stop trillions in fast fashion from going to wasteFashion brands from Levi's to Adidas and textile recycling companies don't want to let fast fashion go to waste.
Read more »
Reports: Lionel Messi chooses Inter Miami over Barca and Saudi Arabia, will sign with MLS this summerLionel Messi has reportedly decided to sign with Inter Miami, a monumental move that could alter the course of Major League Soccer and boost the profile of the sport in the United States.
Read more »
A Lionel Messi decision is near. He 'wants to return to Barca,' but MLS, Saudi Arabia still in mixLionel Messi is nearing a decision that could shift the balance of power in global soccer. He is a free agent with three apparent options: Barcelona, MLS's Inter Miami and Saudi Arabia's Al Hilal. According to just about everyone, from plugged-in reporters to Barca coach Xavi, Messi is expected to choose between the three this week.
Read more »
Matt Gage called up to take Ryne Stanek's spot in Astros bullpenThis will be lefthanded reliever Matt Gage's second stint with the Astros this season as...
Read more »