Piper Jaffray Starts Adidas AG (ADDYY) at Overweight

October 13, 2016 4:09 PM EDT
Get Alerts ADDYY Hot Sheet
Price: $84.50 -1.13%

Rating Summary:
    3 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 26 | Down: 29 | New: 38
Trade ADDYY Now!
Join SI Premium – FREE

Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.

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)."

For an analyst ratings summary and ratings history on Adidas AG click here. For more ratings news on Adidas AG click here.

Shares of Adidas AG closed at $85.76 yesterday.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, New Coverage

Related Entities

Piper Jaffray, Earnings, Erinn Murphy

Add Your Comment