'Time for a comeback': BofA sees sporting goods upcycle from mid-2025

On Holding AG

07/01/2025 12:09

** BofA Securities expects the European sporting goods sector to
rise from the mid-2023 weakness into a robust upcycle by the
second half of 2025
** It sees accelerating organic sales growth from 3% forecasted
for last year to more than 7% in 2025/26, supported by improving
macro conditions and strategic resets among leading brands
** "With valuations still at a discount, the sector offers a
compelling entry point ahead of the next growth phase," it says
** BofA prefers On Holding  ONON.N  and JD Sports  JD.L , both
reinstated at "buy", citing their growth potential and market
dominance
** It reiterates "neutral" for Adidas  ADSGn.DE  after its
"impressive turnaround" and cuts Puma to "underperform" as
uncertainties over its 10% EBIT margin target weigh on sentiment
** Macro headwinds and cautious consumer spending remain
potential constraints, but long-term sector growth trends remain
intact, BofA adds

 (Reporting by Johan Bodinier in Gdansk)
 ((Johangeorgesroger.bodinier@thomsonreuters.com))