The end of the "casual wear trend": Adidas receives double downgrade from BofA
Against the backdrop of this news, the sports retailer's shares posted the worst performance in the Stoxx Europe 600 on January 6.
Shares of German clothing and sneaker manufacturer Adidas fell 6.3% in trading on January 6 after receiving a rare double downgrade from Bank of America (BofA) analysts, Bloomberg reports. BofA now recommends "selling" Adidas shares, downgrading them from "buy" to "below market."
The bank also lowered its target price for Adidas shares from €213 to €160, which is the lowest estimate among analysts covering the company's securities. This implies a decline of approximately 6% from the closing price on January 5 for Adidas shares.
Against the backdrop of this news, Adidas shares posted the worst performance in the Stoxx Europe 600 index — among the stocks of 600 leading European companies, MarketWatch notes.
The downgrade by Bank of America contrasts with positive assessments of Adidas shares by other analysts, Bloomberg writes, noting that they remain unchanged despite the fact that in 2025, the German sneaker manufacturer's shares lost almost 30% amid currency fluctuations that negatively affected the company's profits. About 84% of analysts tracked by Bloomberg still maintain "buy" recommendations for Adidas shares or equivalent forecasts.
Why doesn't Bank of America believe in Adidas?
BofA analysts led by Thierry Cota noted that the recovery of US sportswear manufacturer Nike poses a potential competitive threat to Adidas, while other sports goods manufacturers with sustained and high growth rates — such as On, Asics, and Puma — may attract more attention than the German sneaker maker in the coming months, Bloomberg notes. Although Bank of America expects the 2026 FIFA World Cup to support demand for Adidas products, analysts note that the company's growth rate is likely to slow down after the event.
BofA also urged market participants to exercise caution regarding the entire sportswear sector, noting that the 20-year "casual wear trend" peaked during the COVID-19 pandemic and has now largely run its course, MarketWatch notes. "The question is what will follow the momentum associated with the [soccer] World Cup," Bank of America analysts emphasized.
What do other analysts say?
On December 19 last year, Adidas received a "buy" recommendation from Warburg Research. Analyst Jörg Philipp Frey left the target price for the company's shares unchanged at €255. This target implies a 50% increase in the share price relative to the closing price on January 5. Of the 27 analysts covering the sports retailer's shares, 21 recommend buying them (Buy and Outperform ratings), six are neutral (Hold rating), and there are no sell recommendations, according to Marketscreener data.
This article was AI-translated and verified by a human editor
