ADIDAS AG ● 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
● The group's high margin levels account for strong profits.
● 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.
● The stock is in a well-established, long-term rising trend above the technical support level at 229.2 EUR
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● Technically, the stock approaches a strong medium-term resistance at EUR 273.3.
● With a 2019 P/E ratio at 27 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
