Adidas drops after BofA double-downgrades to 'underperform'

PUMA SE

06/01/2026 08:45

** Shares in Adidas ADSGn.DE slump 6.8% after BofA double-downgrades the German sportswear maker to "underperform" from "buy", deeming the brand upcycle "old news"

** "The group upcycle equity story is well known and stopped leading to EPS upgrades several quarters ago," the broker says

** It flags Adidas' return to organic sales growth at a single-digit percentage rate in a deteriorating sector context, after an estimated boost to growth in the first half of 2026 from the FIFA World Cup

** "We expect sporting goods names with sustained and strong growth, like On and Asics, to be more in focus in a sector where investor interest is waning," BofA says

** It adds the turnaround at U.S. rival Nike NKE.N and potentially smaller German peer Puma PUMG.DE could attract more attention

** BofA reduces 2027 EPS estimate for Adidas by 7%, leading to a 25% cut in price target to 160 euros

** Shares fall to trade at 158.35 euros, hitting the bottom of German blue-chip index .GDAXI

 (Reporting by Linda Pasquini)

 ((Linda.pasquini@thomsonreuters.com))