Adidas stock surged to its highest point since February 2022, reaching 245.80 euros, fueled by positive market sentiment following a favorable report from investment firm Bernstein on Tuesday. The shares were last seen trading at 242.60 euros, marking an impressive increase of 1.3 percent on the day.
According to Bernstein analyst Aneesha Sherman, after five years of devastating market share losses, Adidas is set to return to growth in 2024. Her research signals not only optimism for the current year but also suggests significant growth potential for Adidas over the next two years, thanks to valuable insights drawn from its industry analysis and consumer surveys.
This surge reflects broader market recovery and investors' renewed confidence following the report’s release. The Adidas stock’s performance significantly outpaced the DAX index, which was up by just 0.19 percent at the time. Previously, Adidas captured its highest close on January 7, 2025, at 245.80 euros—also indicating stable upward momentum since hitting a low of 160.20 euros on January 24, 2024.
Even more significant is Bernstein’s upgrade of Adidas’s rating from “Market-Perform” to “Outperform,” which coincided with the elevation of its price target from 212 euros to 300 euros—a move aimed at recognizing Adidas’s recovery plans since its slump. The past months had seen the stock stabilizing, raising questions among investors about whether Adidas’s management could sustain the revived momentum.
"After five years of devastating market share losses, the lifestyle company is back on the growth path for 2024," Sherman noted. This growth-oriented perspective was not without substantial market insights; Bernstein's comprehensive analysis of sales channels and franchise performance led to this confident outlook.
Adidas recently also made headlines through its new partnership as the official team partner for the Mercedes-AMG Petronas Formula One team. This collaboration is set to leverage both brands' strengths, promising exclusive merchandise for fans, mechanics, and engineers involved with the team. The first Adidas x Mercedes-AMG Petronas F1 Team collection is set for launch this February, showcasing apparel, shoes, and accessories aligned with the Formula One series.
"Adidas is likely to continue on this path for the next two years," clarified Sherman, emphasizing the importance of consumer feedback, which appears to support the directional strategies the company is adopting. This strategic entry back to partnering with high-profile teams like Mercedes-AMG is seen as both timely and significant amid the brand's recovery initiative.
The upward spiral of the Adidas stock, now positioned at 243.40 euros, could signal the emergence of renewed investor interest and the potential for Adidas to reclaim its stature within the fiercely competitive sportswear market. Indeed, as this event continues to evolve, stakeholders will be closely monitoring the company’s quarterly performances to validate Bernstein's optimistic projections.
Leading sports retailers are positioned not only to benefit from rising consumer sentiment but also to adjust their operations to meet the demands of modern consumers increasingly interested in premium products and fashion-forward designs. Adidas, bolstered by its recent strategic moves and expert analyses, may just be on the cusp of redefining its market presence.
With shares still down approximately 38.15 percent from their all-time high, now sitting at 245.80 euros, many eyes are on how effectively Adidas plans to capitalize on this turning point and whether it can maintain momentum moving forward. The collaboration with the Mercedes-AMG Petronas Formula One team suggests it is gearing up for more than just recovery.
This partnership may serve as the beginning of Adidas re-establishing itself as not only relevant but as a leader within the market. Investors and fans alike will watch with anticipation as Adidas continues its path of ascendance.