Adidas gets rare ‘sell’ as Bank of America sees slowing growth
The abrupt double downgrade sends the shares down as much as 7.6%
[NEW YORK] Adidas shares slid on Tuesday (Jan 6), as the Bank of America (BOA) gave the stock a rare “sell” rating, saying that things are about to get tougher for the German sneaker maker.
The abrupt double downgrade sent the shares down as much as 7.6 per cent.
BOA analysts, led by Thierry Cota, predicted a return to single-digit sales growth this year, adding that Nike’s turnaround is a potential competitive threat and other brands such as On, Asics and Puma may attract more attention.
The bank moved its rating from “buy” to “underperform”.
The move puts a dent in a wall of optimism among analysts, which remained in place as the stock lost almost 30 per cent of its value in 2025, as currency fluctuations weighed on earnings.
About 84 per cent of those tracked by Bloomberg still have “buy” or equivalent ratings.
While BOA expects the 2026 Fifa World Cup to deliver a boost, it said that growth will likely moderate from there.
The analysts urged caution for the sector more generally, downgrading JD Sports Fashion, and saying the 20-year “casualisation trend” is largely complete.
“The question is what comes after the World Cup boost,” wrote analysts including Cota. “We expect sporting goods names with sustained and strong growth, such as On and Asics, to be more in focus in a sector where investor interest is waning.”
The bank cut its price target to 160 euros, the lowest estimate among analysts, implying about a 6 per cent drop from Monday’s close. The stock traded at 158.60 euros as at 11.08 am in Frankfurt. BLOOMBERG
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