ADDDF - adidas: Positive Results And Favorable Guidance Are Priced In
2024-07-18 14:26:40 ET
Summary
- I assign a Hold rating to adidas after assessing its financial performance and valuations.
- ADDYY's second quarter sales and operating margin were better than what the market had anticipated.
- But the stock is trading at demanding valuations, which have factored in the company's good Q2 results.
Elevator Pitch
I rate adidas AG ( ADDYY ) ( ADDDF ) [ADS:GR] stock as a Hold.
My view of adidas is Neutral, taking into consideration both its financial performance and valuations. ADDYY's Q2 2024 revenue and operating profit surpassed the market's expectations, and the company has revised its full-year guidance upwards. But adidas' shares are expensive, as the stock trades at relatively higher multiples as compared to its peers. Therefore, it is reasonable to assign a Hold rating to adidas, as positives have been priced in for this stock....
adidas: Positive Results And Favorable Guidance Are Priced In