RBC ups Adidas to outperform on growth momentum, re-rating potential
BUZZ-RBC ups Adidas to outperform on growth momentum, re-rating potential ** RBC raises Adidas ADSGn.DE to "outperform" from "sector perform", citing the sportswear group's direct-to-consumer-led revenue growth, order visibility and consistent execution
** Expects broad-based momentum across regions, categories and sports verticals seen in Q1 to continue into Q2
** "Adidas earnings outlook is towards the higher end vs sporting peers at a discount valuation which offers re-rating potential, as the market better understands the durability of the growth," the broker says
** Adds the company's 2027 outlook de-risks the setup and provides comfort as its late-cycle momentum normalises due to challenging multi-year comparatives
** "Market share recovery underway," RBC says, noting current market share levels are below peak but offer future potential, particularly in North America and China
** Stock up 1.2%
(Reporting by Ozan Ergenay)
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