Adidas stock faces UBS downgrade over footwear risks

UBS has downgraded Adidas stock to sell, adding a more cautious view to the sportswear group's strong third-quarter backdrop. Yahoo Finance reported that UBS cut its 12-month price target to 156 euros from 160 euros.

Footwear momentum comes under scrutiny

UBS expects currency-neutral sales growth of 4 percent for Adidas in 2027, below the 7 percent consensus cited in the report. The bank pointed to fading momentum in Terrace footwear and weaker prospects for established lifestyle franchises such as Superstar and Stan Smith.

The report also highlighted a sharper contrast between Adidas' performance and lifestyle businesses. Performance products grew 27 percent in the first nine months of 2026, while lifestyle sales increased 4 percent. Running growth slowed to 19 percent in the third quarter from 28 percent in the preceding quarter, according to the UBS assessment.

Margin risks remain in focus

UBS forecasts a 2027 gross margin of 51.3 percent, below the 52.3 percent consensus, citing input costs, product mix and the expected reversal of tariff-refund benefits. It sees a 2027 operating margin of 9.1 percent, below the roughly 10 percent level targeted by management.

Adidas stock closed at 179.80 euros on Xetra at 17:19 CET on Thursday, November 5, 2026, 1.96 percent above Wednesday's Xetra close of 176.35 euros. The market is therefore pricing the upgraded 2026 outlook alongside questions about the durability of growth beyond the current year.

Germany's DAX remains the relevant market backdrop for the shares.