Frankfurt, Jan 6, 2026, 14:39 CET — Regular session
- Adidas shares fall about 6% after Bank of America cuts the stock to “underperform” and slashes its target to €160
- BofA flags slowing “organic” growth and fading margin tailwinds across the sporting-goods sector
- Investors look to upcoming macro data and Adidas’ FY 2025 results for the next catalyst
Adidas shares slid on Tuesday after Bank of America double-downgraded the German sportswear maker, souring sentiment across a sector that had relied on a steady stream of earnings upgrades. The stock was down 5.5% at 160.48 euros, with trading volume running above its three-month average.
The call matters because Adidas has been pitched as a turnaround with improving demand and pricing power, a view that helped support the stock even as consumer spending stayed uneven in parts of Europe. A two-notch cut from a major broker forces investors to re-test those assumptions in real time.
It also lands as equity markets start the year near record levels, leaving less room for missteps in stocks that trade on growth expectations. For Adidas, the key debate now is whether sales momentum and margins can keep improving once one-off boosts fade.
Bank of America argued that the “upcycle” story had become well known and had “stopped leading to EPS upgrades” in recent quarters, in a note led by analyst Thierry Cota. The broker said it now expects Adidas to settle into single-digit organic sales growth — sales growth excluding currency swings and acquisitions — with the operating margin (EBIT margin) reverting closer to longer-run averages, and it cut its 2027 earnings forecast by 7%. Investing.com
BofA also cut its price target to 160 euros from 213 euros and downgraded JD Sports, warning that a two-decade “casualisation” trend — the shift toward sneakers and athletic wear in everyday wardrobes — is largely complete. The broker said a weaker growth backdrop could push investors toward names it views as having more durable growth, while competition remains intense. Sharecast
The move stood out even as European stocks edged higher and Germany’s DAX flirted with record levels, with traders focused on a heavy slate of inflation figures and manufacturing readings that could shape rate-cut expectations. Those macro signals matter for consumer-facing stocks because easier policy can lift valuations, while sticky inflation can keep pressure on household spending.
Still, the downgrade is not the only possible path for the stock. Bank of America said the 2026 FIFA World Cup could provide a demand boost, but warned growth may moderate after that, and it flagged Nike’s turnaround as a competitive threat as shoppers weigh rival brands.
For now, traders are watching whether the shares stabilise after the sharp drop and whether other brokers follow with rating or target changes. Investors also want clearer signals on promotions and inventory levels, which can quickly erode margins in apparel when demand cools.
