Adidas AG shares trade at a forward P/E ratio of approximately 19.2x, notably below Nike’s 23.5x multiple, suggesting the German sportswear maker could provide better upside if sector sentiment improves. Analysts forecast Adidas revenue growth of 7.8% year-over-year in fiscal 2026, driven by expanded direct-to-consumer sales—now accounting for 43% of total revenue—while operating margin is projected to expand to 8.5% from 7.3% in the prior year on tighter inventory management. The company’s 5-year compound annual growth rate in earnings per share stands at 12%, outpacing Nike’s 9%. At current valuations, Adidas trades at an EV/EBIT of 14.7x versus Nike’s 18.1x, highlighting a relative value opportunity, particularly if global footwear demand rebounds in key markets such as North America and Greater China.

Bank of America analysts downgraded Adidas from Buy to Underperform and cut their price target from €255 to €185 following data indicating the end of the ‘casualization’ trend that had driven robust athleisure sales. The downgrade marks one of the few instances in which BofA has issued a simultaneous rating and target-price cut on a major European apparel stock. In response to the research note, Adidas shares declined by 4.8% in Frankfurt trading, making it the worst performer among the STOXX Europe 600 constituents on the day. BofA highlighted a 2.2% sequential drop in wholesale orders for Q3 and cautioned that slower order momentum could weigh on inventory turnover, which has slipped to 3.1 turns from 3.5 turns a year earlier.