The investment bank UBS has revised the rating of the German company Adidas. Analysts lowered the recommendation from buy to neutral. The target share price decreased from 219 to 173 euros. Experts pointed to the pressure on the gross margin of the manufacturer. The market may underestimate these factors in the coming years. The sports brand's securities reacted to the news with a decline in quotations. Shares were down about three percent by midday. The authors of the report, Robert Krankowski and Zuzanna Push, maintained a positive outlook. They believe in the long-term prospects of the company under the current leadership. The Bank expects unambiguous revenue growth rates in the medium term. However, the operating leverage is not enough to grow profits. This will happen in 2027 and 2028.

Analysts have identified three specific factors of pressure on margins. Firstly, the indicators in key markets are close to their peak values. This limits the opportunities for further expansion of profitability. The company is shifting its focus to a balanced mix of product categories. In 2027, sales will be more focused on the wholesale segment. Secondly, oil prices increase the cost of finished products. More than sixty percent of Adidas' raw materials are directly related to oil. Partial compensation through pricing will not cover all costs. Thirdly, the recent strengthening of the US dollar creates additional risks. The currency tailwind is now supporting the brand's financial performance. This effect will disappear as the hedging positions expire. The situation will completely change before the beginning of fiscal year 2028.

UBS conducted an analysis of the reverse discounting of the company's cash flows. The market has already priced in high growth rates. Investors expect the terminal margin to be higher than the bank's forecast. UBS forecasts this figure at ten percent. The opportunities for positive profit revisions are now very limited. The only exception will be the one-time effect of the tariff refund. Analysts do not see clear catalysts for a business revaluation. They expect stocks to trade in a sideways price range. Experts also pointed to increased competitive pressure in the industry. Nike and Puma may become a deterrent in 2027. The historical correlation between Adidas and Nike sales remains low. The company will continue to develop its main lines of sporting goods.