Summary
I gave a neutral rating to Adidas (OTCQX:ADDYY) previously as I wanted to observe how the business would fare in 4Q24 before I was convinced that ADDYY had turned around the business. Indeed, ADDYY did not disappoint. They made significant
Adidas: Upside Potential Is Attractive, But Macro Concerns Are Limiting The Near-Term Upside
Summary
- Adidas showed strong top-line growth and margin expansion in 4Q24, but macro uncertainties and conservative FY25 guidance limit the stock's upside potential.
- Significant improvements were seen across all key regions, especially North America, where Adidas returned to double-digit growth after multiple quarters of struggle.
- Despite broad-based demand momentum and balanced channel growth, cautious management guidance and macroeconomic concerns warrant maintaining a hold rating on Adidas.
I'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality companies at a discount to their intrinsic value and holding them for the long haul, allowing them to compound their earnings and shareholder returns.
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