Deutsche Bank AG NA O.N. (ETR:DBKGn) has raised its price target for Adidas AG (ETR:ADSGN) to €210 from €200 and reiterated a Buy recommendation, pointing to stronger earnings momentum, an uptick in brand engagement and anticipated demand related to the 2026 FIFA World Cup as catalysts for another solid quarterly performance.
The brokerage expects Adidas to post a strong second quarter, with World Cup-linked purchases supplementing already vigorous constant-currency sales growth. Deutsche Bank said it sees the first half of 2026 as the likely peak for sales growth, after which it expects earnings to be increasingly driven by gross margin improvement and continued cost discipline in the second half of the year.
Analyst Adam Cochrane adjusted his forecasts upward, lifting his 2026 EBIT estimate by about 4% to €2.55 billion and increasing his 2027 EBIT projection by 3% to €3.01 billion. The firm also raised its 2026 earnings-per-share forecast to €9.80 - approaching the roughly €10 level it had forecast before earlier U.S. tariff concerns - and set a 2027 EPS forecast of €12.20.
Deutsche Bank described Adidas as one of its highest-conviction ideas across the European consumer sector, arguing the company can continue to outpace peers on sales even within what the bank refers to as a subdued sporting goods environment.
Despite the upgraded target and forecasts, Adidas shares slipped 1.2% in afternoon trading to €178.68, underperforming the broader German market.
Market context - The brokerage highlights a near-term sales peak in the first half of 2026, followed by a shift in the earnings profile toward margin expansion and cost control, and believes tournament-related demand will support top-line strength in the upcoming quarter.
Analyst revisions - Cochrane raised key earnings metrics for both 2026 and 2027, reflecting a more optimistic view on operating profit and per-share earnings while bringing the 2026 EPS estimate close to previous levels before tariff concerns affected expectations.