Adidas gets rare sell as Bank of America sees slowing growth

Adidas AG shares slid on Tuesday as Bank of America Corp. gave the stock a rare sell rating, saying things are about to get tougher for the German sneaker maker.

The abrupt double downgrade sent the shares down as much as 7.6%. Analysts led by Thierry Cota predicted a return to single-digit sales growth this year, adding that Nike Inc.’s turnaround is a potential competitive threat and other brands like On, Asics, and Puma may attract more attention. The bank moved its rating to underperform from buy.

The move puts a dent in a wall of optimism among analysts, which remained in place as the stock lost almost 30% of its value in 2025 as currency fluctuations weighed on earnings. About 84% of those tracked by Bloomberg still have buy or equivalent ratings.

While Bank of America expects the 2026 FIFA World Cup to deliver a boost, they said growth will likely moderate from there. The analysts urged caution for the sector more generally, downgrading JD Sports Fashion Plc and saying the 20-year “casualisation trend” is largely complete.

“The question is what comes after the World Cup boost,” wrote analysts including Cota. “We expect sporting goods names with sustained and strong growth, like On and Asics, to be more in focus in a sector where investor interest is waning.”

The bank cut its price target to 160 euros, the lowest estimate among analysts and implying about a 6% drop from yesterday’s close. The stock traded at 158.60 euros as of 11:08 a.m. in Frankfurt.