Adidas shares were by far the biggest gainers on the DAX index on Monday's trading day on the Frankfurt Stock Exchange, following a double recommendation upgrade by Morgan Stanley.

The financial intermediary's rating on the sports equipment maker's shares was raised directly to 'overweight' from 'underweight', with a price target raised from €175 to €235.

In a research note, the analyst praises the favorable reception given to the group's latest collections, as well as the expansion of the range surrounding models that had previously sold well, such as the SL72 sneakers.

Morgan says he expects its improved performance to continue with the recent partnership with Anthony Edwards in basketball and the prospect of the forthcoming Euro 2024 soccer tournament.

The professional adds that adidas could also benefit from the recent bout of weakness at Nike, where the pace of innovation has slowed, but also from its more pragmatic approach to pricing.

The analyst predicts an inflection point in sales in the second half of the year, leading him to revise upwards his sales forecasts for 2024, 2025 and 2026.

At 11:55 a.m., the sporting goods manufacturer's shares were up 4.2%, compared with a gain of around 0.7% at the same time for the DAX index.

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