ADS.DE Stock Today: January 24 RBC Cut Sends Adidas to 3-Year Low
Adidas stock slid after a fresh downgrade from RBC to Sector Perform on 24 January, citing risk that 2026 guidance could miss consensus as hopes for a China rebound fade. Shares of ADS.DE were last around €152.45, down about 5.7% intraday, with volume above average. The move pressured European peers, and Puma shares fell as well. With valuation, margins, and China demand back in focus, we outline today’s price action, key technical levels, and what German investors should watch into the next earnings update.
RBC downgrade hits valuation and sentiment
RBC cut the name to Sector Perform, highlighting that recovery in China may be slower than bulls expect. Adidas stock had relied on improving sell-through and pricing power to support margins. The note questions whether 2026 growth and operating leverage will reach current models. That reset weighed on sentiment across Frankfurt trading, as investors rotated toward names with clearer earnings visibility.
Consensus embeds faster growth in Asia and steady gross-margin expansion. Adidas stock now trades at a 21.1x TTM P/E and 9.8x EV/EBITDA, which leaves limited room for disappointment. If China traction lags and promotions rise in Europe, operating margin could compress. The downgrade reminds investors that execution on inventory turns and mix shift must accelerate to meet targets. See coverage: boerse.de.
What the price action says today
Price: €152.45. Day low: €151.90. Day high: €156.60. Volume: 822,758 vs 593,758 average. Adidas stock is down 5.7% day over day, -11.5% over 5 days, and -14.5% year to date. The one-year move is -44.5%. Market cap is about €25.7 billion. The drawdown pushed shares near a three-year low reported in Frankfurt dealing, according to n-tv.
RSI is 43, showing weak momentum. CCI at -184 signals short-term oversold. ADX at 16 suggests no strong trend. Watch resistance at the 50-day average €161.82 and middle Bollinger €165.28. Support sits around €156.60 intraday high turned level, €150 round number, and the 52-week low €142.55. Adidas stock also trails the 200-day average €183.95, keeping bears in control.
China drag and Europe read-across
China remains the swing factor. Inventory days stand near 166, so faster sell-through is key for mix and markdowns. Adidas stock needs cleaner channel inventories and stable pricing to protect gross margin. We track quarterly wholesale orders, outlet traffic, and digital conversion. Any improvement in full-price sell-out would support a margin rebuild into 2026.
The bearish call hit regional peers, and Puma shares fall as investors reassess growth and margin paths tied to China and Europe. Wholesale caution in DACH and Southern Europe adds risk to H1. A steadier euro and lower freight help, but category demand must re-accelerate. Clear guidance on Asia recovery and promotions will be crucial for confidence.
Fundamentals and valuation check
TTM gross margin is 51.4%, operating margin 7.9%, and net margin 4.9%. ROE is 22.1%. Debt-to-equity is 0.95 with interest coverage 8.94x, and current ratio 1.31. Dividend yield is about 1.39% on €2.00 per share. Adidas stock fundamentals show progress, but cash generation is modest with a 1.48% free cash flow yield.
P/E is 21.1, P/S 1.04, P/B 4.51, and EV/EBITDA 9.78. Growth improved in 2024 with EPS up 11.2% and EBIT up sharply, yet the PEG is elevated at 14.18, implying rich expectations. For Adidas stock, better China comps, lower inventories, and disciplined promotions are needed to justify multiples into 2026.
Final Thoughts
Today’s drop follows an RBC downgrade that reopens questions about growth in China and margin durability. For investors in Germany, the near-term setup is technical: price is below the 50-day and 200-day averages with support at €150 and €142.55. We would watch weekly sell-through in China, inventory turns, and gross-margin guidance. On valuation, a 21x P/E and 9.8x EV/EBITDA require steady execution. Next earnings on 4 March 2026 should update China trends, promotions, and guidance. Short-term traders can frame risk around €156–€165 resistance. Longer-term holders may prefer incremental confirmation on demand before adding. Our system grade is B (Hold).
FAQs
Why did Adidas stock drop today?
An RBC downgrade to Sector Perform on 24 January cited risk that 2026 guidance could miss consensus and that hopes for a quick China rebound are fading. The call hit sector sentiment, pushing volume above average and sending the price toward multi-year lows as traders reduced exposure to discretionary names.
Is Adidas stock attractive after this fall?
Valuation is mid-pack at 21.1x TTM P/E and 9.8x EV/EBITDA, with a 1.39% dividend yield. The setup can improve if China demand stabilizes, inventories normalize, and gross margins hold. Until guidance tightens, risk-reward looks balanced, which is consistent with a Hold stance rather than a clear buy.
What technical levels should I watch now?
Near-term resistance sits around €156.60, then the 50-day average at €161.82 and the Bollinger mid-band at €165.28. Key support is €150 and the 52-week low at €142.55. Momentum is soft with RSI at 43 and CCI oversold, so bounces may face supply into the moving averages.
How does China affect the outlook?
China is the main swing factor for growth and margin. Slower sell-through pushes promotions higher and weighs on gross margin. Clear signs of improved full-price sell-out, healthier channel inventories, and better wholesale orders would support a more positive view on revenue and profitability into 2026.
When is the next earnings update?
Adidas is scheduled to report on 4 March 2026. We will look for updates on China sell-through, inventory days, pricing, and gross-margin guidance. Any commentary on Europe wholesale trends and digital momentum will also be key for refining forecasts and assessing the path back to higher margins.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
