ADS.DE Stock Today: January 23 RBC Downgrade Knocks Adidas 6%
Adidas stock fell sharply today after an RBC downgrade sparked selling across sportswear names in Germany. Shares of ADS.DE traded near €152, with the move briefly touching the lowest level since March 2023. RBC cut its rating to Sector Perform and set a €160 price target, citing a tough market and optimistic 2026 expectations. Goldman Sachs also trimmed its target to €180 and kept Neutral, adding to caution into March results. We break down what this means for German investors.
Why the downgrade hit today
RBC downgraded the shares to Sector Perform and lowered its target to €160, arguing that 2026 estimates look too optimistic given demand risks and competitive pressure. The call followed recent weakness in European consumer names and pushed Adidas stock lower intraday. Full details are available at boerse.de’s flash note source.
Goldman Sachs cut its price target to €180 while maintaining a Neutral stance, reinforcing a cautious setup ahead of March results. The combination of rating and target changes from two major brokers pressured sentiment and weighed on sector peers during the session. See the summary at finanzen.net source.
Price action and technical signals
Adidas stock fell about 6% intraday to around €152.45, with a day low of €151.90 and a year low of €150.40. Five-day performance sits at -6.16% and YTD at -9.28%. Volume rose to 821,962 versus a 590,037 average, signaling strong participation on the drop. The market cap stands near €27.22 billion on Frankfurt, reflecting a sharp repricing of expectations.
Momentum is weak. RSI is 43.05, ADX is 15.95, and CCI is -184.6, flagging near-term oversold. Price trades below the 50-day (€162.06) and 200-day (€184.18) averages. With ATR at 4.78 and the lower Bollinger band near €159.47, today’s move pierced typical volatility bounds. First resistance sits near €160, while €150 is the key support to monitor.
Valuation check and what to watch
At €152.45, the shares trade near 22.35x TTM EPS and 1.10x sales, with a 4.78x price-to-book and about 1.31% dividend yield. EV/EBITDA is roughly 10.28x. Free cash flow yield is about 1.39%, which limits valuation support if growth slows. These metrics suggest quality improving, but not yet cheap if earnings expectations moderate.
Earnings are due on 4 March 2026. Key checks include inventory days at 166, margin trajectory, and guidance against RBC’s 2026 caution. Balance sheet metrics are stable with a 1.31 current ratio and 0.95 debt-to-equity. Our system grade is B with a Hold suggestion. A decisive move above €160 would ease pressure. Below €150 increases downside risk.
Final Thoughts
Today’s selloff shows how sensitive Adidas stock is to shifts in analyst expectations. With RBC moving to Sector Perform at €160 and Goldman staying Neutral at €180, the near-term setup is cautious. Price sits below key moving averages and momentum is weak, while valuation is mid-20s on earnings and cash yields remain modest. For German investors, the plan is simple. Watch €150 support and the €160 area as first resistance. Into the 4 March report, focus on gross margin, inventory, and 2026 guidance. Consider phased entries only if risk fits your plan, and use clear stops around recent lows. Patience may offer better entries if volatility persists.
FAQs
Why did Adidas stock drop today?
The main driver was an RBC downgrade to Sector Perform with a €160 price target, citing a tough market and optimistic 2026 estimates. Goldman Sachs also reduced its target to €180 while keeping Neutral. Together, these updates pressured sentiment and drove a roughly 6% intraday decline on elevated volume.
Is Adidas stock a buy after this decline?
It depends on risk tolerance and time horizon. Valuation sits around 22x earnings and 1.10x sales, with weak momentum below the 50-day and 200-day averages. Our system grade is B with a Hold suggestion. Many investors may wait for the 4 March results and a reclaim of €160 resistance.
What price levels are important now?
Near-term, €150 is key support, with the recent year low at €150.40. On the upside, €160 is first resistance and aligns with the new RBC target. The 50-day average near €162 and the 200-day near €184 are trend markers many traders watch before turning more constructive.
What should investors watch in the March earnings?
Focus on inventory days, gross margin, and 2026 guidance. These items address concerns raised by RBC. Also watch revenue growth, direct-to-consumer mix, and any comments on demand in Europe and China. Confirmation of improving cash flow would help support the current valuation.
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.
