BofA Downgrades adidas to Underperform, Flags Long-term Sector Slowdown

02:29 AM EST, 01/07/2026 (MT Newswires) -- BofA Global Research downgraded adidas (ADS.F) to underperform from buy and reduced its financial assumptions for the German athletic apparel and footwear company, in line with the sector "downcycle." The price objective was also cut to 160 euros from 213 euros on Tuesday, while BofA's organic growth forecast was lowered to 5% from 7.5% for 2027. "The brand remains in an upcycle but the stock faces three hurdles: short term (slower 4Q [organic sales growth] with no/low [operating expenditure] leverage), medium term (likely FY26 high single digit organic sales guidance vs the double-digit trend intially planned, signalling the soft landing of the brand's upcycle) and longer term (risk to the double-digit EBIT margin," said the research firm. Overall, BofA expects a long-term slowdown in average sector growth due to the end of a 20-year casualization trend, stagnancy in sport participation in the US, and a lack of expansion in the retail exposure of adidas as a share of revenues.