Adidas Boosts Price Target to €170 as Q1 Sales Reach €6.6 Billion
RBC Capital maintained its Sector Perform rating on Adidas but raised its price target to EUR 170 from EUR 160 after first-quarter results. Currency-neutral sales reached €6.60 billion versus €6.30 billion expected, operating profit hit €705 million, net income rose 11% to €484 million, and performance sports revenue climbed 29%.
1. Analyst Rating and Price Target Update
RBC Capital maintained its Sector Perform rating on Adidas but raised its price target to EUR 170 from EUR 160, signaling improved confidence in the company’s growth prospects after exceeding first-quarter expectations.
2. Q1 Financial Results
Adidas reported currency-neutral sales of €6.60 billion compared to €6.30 billion expected, operating profit of €705 million (up 16% year-over-year), and net income of €484 million (up 11%), lifting the operating margin to 10.7%.
3. Demand Drivers
Strong consumer demand propelled a 29% increase in performance sports revenue and sustained interest in retro lifestyle models such as Samba and Spezial under CEO Bjorn Gulden’s leadership.
4. Outlook Risks
Management warned of potentially volatile market conditions, citing foreign-exchange headwinds and shifting consumer spending trends that could affect future financial performance.