Adidas recovers after rare double downgrade rattles stock market confidence
Adidas faced a turbulent start to 2026 after a rare double downgrade by major banks. The sportswear giant saw its stock market plummet following sharp price target cuts, yet the company managed to steady its position by week’s end. Despite the setback, the brand continues to push forward with new products like the Dropset 4 training shoe.
The trouble began when Goldman Sachs removed Adidas from its 'Conviction Buy List' and slashed its target price. Concerns over profitability and excess inventory drove the decision, sparking an immediate sell-off. Yet the drop proved short-lived—Adidas quickly reaffirmed its financial guidance, reassuring investors.
Bank of America added to the pressure by downgrading the stock from 'Buy' to 'Underperform'. Analyst Thierry Cota cut the price target from €213 to €160, deepening the stock’s decline. Shareholders reacted strongly to the rare double downgrade, but the panic eased as the week progressed. By Friday, Adidas shares had stabilised above the critical support level of €158, closing at €166.65. The rebound placed the stock around 11% above its 52-week low of €149.70. For a lasting recovery, traders now eye the 200-day moving average at €185.18 as the next hurdle. Despite the volatility, Adidas remains focused on innovation. The recent launch of the Dropset 4 training shoe highlights the brand’s push to stay ahead in a competitive market.
Adidas shares have weathered a rocky period, recovering from steep downgrades to hold above key support levels. The company’s ability to confirm its outlook and maintain demand has helped stabilise its stock. A sustained upward move will depend on breaking through the €185 resistance mark in the coming months.
