Superior Performance Yielded by the Three Stripes Brand
Drawback Turned Upside: A Positive Spin on Adidas' Recovery
Adidas is experiencing a major resurgence, evidenced by its recent stock surge to a three-year high. This comes after a series of positive developments, with a favorable report from Bernstein Research being a significant boost. After five years of market share losses, Adidas is predicted to see growth again by 2024, as claimed by Bernstein analyst Aneesha Sherman. Despite this positive momentum, investors remain hesitant about the management's long-term potential. Sherman, however, remains optimistic, citing market analysis, distribution channel examinations, and consumer surveys that indicate a continuous growth trajectory for the following two years. She's upgraded Adidas' stock from "Market-Perform" to "Outperform" and increased the price target from 212 to 300 euros.
More Good News Ahead: According to an analysis by the Indian newspaper "Free Press Journal," Adidas ranked among the seven largest apparel companies globally in terms of revenue last year. Luxury brands like Dior, Hermès, Gucci, Chanel, and Louis Vuitton led the pack, with balance sheets ranging from 13.2 to 26.3 billion dollars. Adidas, with its iconic three stripes, generated 15.7 billion dollars while its U.S. rival Nike earned a staggering 31.3 billion dollars.
The potential for a new partnership could add to Adidas' positive outlook. Details about this partnership, however, are still up in the air. After ending a collaboration with the German Football Association ten months ago, Adidas is now reportedly teaming up with another partner—stay tuned for more news in the upcoming issue of €uro am Sonntag—THE Financial Newspaper with MORE on the weekend!
Glimpse Inside This Week's Issue:
Bumpy Ride After the Quantum Leap - Nvidia CEO Jensen Huang's words about future technology caused stock prices to tumble, but following a remarkable rally (p.6)Robust Revenue Rise - One company's business saw a surprising increase in 2024, resulting in a significant stock boost. However, it's still too soon for unbridled excitement (p.8)Ambitious Sports Plans - Disney and FuboTV are considering merging their live streaming services, potentially leading to substantial returns (p.14)Oil Prices Crash or Collapse? - An expansion in production could provoke a backlash from OPEC countries (p.38)Financial Bonanza in 2025 - Insurers like Allianz, Munich Re are expected to outperform bank stocks in terms of returns in 2025. Reason? A more favorable stock market outlook for insurers (p.44)
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- In light of Adidas' impressive stock surge and positive outlook, investors may consider diversifying their portfolio by investing in the finance sector, given the brand's promising recovery and projected growth.
- With Adidas generating significant revenue and ranking among the seven largest global apparel companies, financial analysts might find it beneficial to examine the company's business model and strategies, given its competitive position in the market.
