The World Cup Could Be a Long-Term Growth Driver for Adidas — UBS
The impact of the current FIFA World Cup on the business of German sportswear and footwear manufacturer Adidas will not be limited to just a short-term surge in sales, according to UBS analysts. In a note published on Monday, the Swiss bank reaffirmed its “buy” rating on the company’s stock and maintained its price target at €219, according to CNBC. This implies upside potential of approximately 18% from the closing price on July 6.
Details
UBS analyst Robert Krankowski believes that the 2026 World Cup could serve as an important long-term catalyst for growth in Adidas stock at a time as the company seeks to strengthen its position in the U.S. market, which accounts for about 20% of its revenue.
“One of investors’ main concerns is that the World Cup in the U.S. will turn out to be nothing more than a one-time sales boost, which will then become a source of pressure in 2027,” Krankowski noted in a memo cited by CNBC. In his view, this perspective oversimplifies the situation, as it fails to account for the effect of demand shifting. “For example, some shoppers who would normally buy Major League Soccer and Canadian soccer league jerseys in a typical year will switch to World Cup-related merchandise during the tournament. Therefore, it will not only temporarily boost sales but could also become a long-term driver of Adidas’ growth in the U.S. market,” the analyst believes.
CNBC notes that the company’s profitability in North America is currently lower than in other regions: about 45.4% compared to 50.8% for the group as a whole. A UBS study shows that Adidas typically trails Nike by a smaller margin in terms of market share in countries where soccer is more popular. Since the World Cup is being held in the U.S., Canada, and Mexico—and right before the key period when major retail chains place their orders—Adidas will be able to capitalize on the growing interest in soccer and boost brand awareness. According to UBS, this could amplify the tournament’s positive impact on the company in one of its most important regions.
“As the business grows, profitability should increase over time—not only because of more favorable terms with suppliers and retailers, but, more importantly, because higher sales will allow for a more efficient allocation of fixed costs,” says Krankowski.
UBS considers the rapidly growing market for running gear to be another long-term growth driver for Adidas. According to the bank’s estimates, this category currently accounts for about 12% of the manufacturer’s revenue, and in the first quarter of 2026, sales of running products grew by 28%. “Adidas has expressed significantly greater confidence in the sustainability of this segment, driven by a broader product range and a more localized approach to operating in different markets,” noted Krankowski.
According to the analyst, the brand is not yet widely available in specialty running stores. “Securing additional shelf space in this sales channel may take a long time, but the initial results look promising,” he emphasized.
What Other Analysts Are Saying
On July 2, JPMorgan resumed coverage of Adidas shares with a “Buy” rating and a price target of €230—even higher than UBS’s—according to MarketSkreener. On the same day, DZ Bank reaffirmed its buy rating and target price of €215. On June 30, Deutsche Bank maintained its bullish recommendation and raised its target price from €200 to €210.
According to FactSet data, 22 out of 28 analysts tracking the sportswear manufacturer’s stock recommend increasing holdings in Adidas. The remaining six recommend holding the stock in their portfolios. The consensus price target is around €205, which is 10.6% above the current share price.
This article was AI-translated and verified by a human editor
