Piper Jaffray Starts Adidas AG (ADDYY) at Overweight
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Piper Jaffray initiates coverage on Adidas AG (ADS.GR) (OTC: ADDYY) with a Overweight rating and EUR173 price target.
Analyst Erinn Murphy commented, "We are initiating coverage of ADS.GR at an Overweight with a €173 PT. Our earnings estimates are ahead of the Street at €5.02 and €5.76 for FY16 and FY17, respectively. That said, we see room for sales, margin & earnings upside to our numbers given the robust brand momentum. adidas, as a brand, has emerged as one of the quickest growing brands in our proprietary Teen Survey work with the brand achieving new highs as an athletic and as a fashion brand. We see North America as a particular catalyst and note market share today is 7-8% vs. Nike's 40%+ share. We see this market and see EBIT for adidas moving from the 7.7% range to the double-digit territory over time (NKE, 13% & UA, 9%) supported by gross margin expansion & expense disciplines. We see a €9/share EPS power to the name by 2020 (26% 5-year CAGR)."
Shares of Adidas AG closed at $85.76 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Related EntitiesPiper Jaffray, Earnings, Erinn Murphy
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