Proactive Investors - Adidas AG (ETR:ADSGN) was granted an upgrade by Royal Bank of Canada (TSX:TSX:RY) analysts on Monday, which saw the sports retailer’s shoe brands as buoying growth over the year.
Highlighting Adidas’ Terrace range, analysts at the bank bumped the firm up to an ‘outperform’ rating, explaining in a note that such brands would help against muted consumer demand.
“Adidas currently has one of the stronger product cycles in the marketplace [...] which in the context of volatile consumer demand is an important factor,” the bank said.
Organic revenue growth will likely sit at 6% for the year, the bank added, compared to a previous expectation of 9%.
However, this was then tipped to climb by 12% in 2025, above initial estimates of 9.5%.
“In a year that is likely to be characterised by softer first half demand trends [...] we believe specific product momentum and fashion trends are likely to play a significant part in driving revenue growth,” analysts continued.
“For Adidas, the Terrace trend is proving to be a lifeline.”
Analysts reiterated Adidas’ share price target to €200, implying a 14.5% upside on Friday’s closing value.