Adidas AG (ADDYY) PT Lowered to $132.50 at Bernstein SocGen

Bernstein SocGen Group analyst Aneesha Sherman lowered the price target on Adidas AG (OTC: ADDYY) to $132.50 (from $137.91) while maintaining an Outperform rating.

The analyst commented: "Adidas has leaned into World Cup product, marketing and merchandising since Q4 and should see ~MSD impact on North Am sales. New launches YTD include 2026 World Cup kits, new Predator and F50 boot colorways, as well as a range of footballinspired lifestyle apparel. The product is supported by strong marketing efforts, including several top team sponsorships, and dedicated marketing and merchandising on DTC (incl. stores and web), Wholesale (with strong merchandising at Sporting Goods retail) and social media. With only 5% market share in North America Sportswear, Adidas is well set up for strong growth off a low base - we expect a ~MSD% uplift to N.Am numbers and LSD% to global sales from the event, peaking in Q2-3.

Implications for Nike and Adidas: Beyond the revenue uplift (which we estimate to be MSD% for Adidas N.Am, LSD% for Nike, with smaller boosts in other regions) this event will be a catalyst for both brands to build mindshare and consumer interest. Nike sees the World Cup as a catalyst to drive a wave of demand in Global Football (a small but fastgrowing sport category in North Am) and continue to rebuild the brand’s credibility in Performance beyond Running. Adidas has a much lower base of sales in North Am vs. Nike and could use the event as a platform to continue to grow sell-in into US Sporting Goods Retail as well as brand traction with American consumers, to then further build on with Basketball and Lifestyle offers. With both stocks down YTD and sentiment washed out, a strong World Cup showing and a boost in sales and brand heat could also drive investor interest and re-rating over the next few months. We like both names, but feel that we need at least another quarter for Nike and perhaps 2 Qs for Adidas to meaningfully work."

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