adidas AG : The trend should continue
Entry price | Target | Stop-loss | Potential |
---|
€192.35 |
€220 |
€173.8 |
+14.37% |
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Adidas shares have recently benefited from a buyers' comeback, which was accompanied by a rise in volumes and volatility. This situation suggests a continuation of the upward dynamic.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● The tendency within the weekly time frame is positive above the technical support level at 157.1 EUR
Weaknesses● Stock prices approach a strong long-term resistance in weekly data at EUR 184.15.
● With a 2017 P/E ratio at 28.72 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
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