The share of Adidas yesterday confirmed the breakout above the resistance level of EUR 286.80. The figures for the third quarter were almost at the previous year’s level and for the current quarter the lockdown and the associated closure of shops could lead to a more significant decline in sales again. According to Thomson Reuters, the majority of analysts are nevertheless confident in favor of the paper in the medium term and have some solid reasons for it.
The results of the third quarter showed a significant increase in sales in online retail. The e-commerce sector grew by around 51 percent. This segment is to be expanded further. In the past few days there have been several reports that the problem division Reebok may be sold. Management gives itself until March 2021 to decide on the future of the US brand. Then CEO Kasper Rorsted wants to present the company’s new 5-year plan. One thing already seems clear. The focus is likely to be on further digitization and the expansion of direct sales to customers. In addition, there may be two mega-events – the European Football Championship and the Olympic Games – if the corona pandemic allows the events.
There is still some imagination in the share. However, with a P / E ratio of 30, the stock is no bargain. Bad news from the group or a major correction in the overall market could put the share under pressure.
Chart technical outlook: Adidas
Resistance marks: EUR 300.00 / EUR 316.65
Support stamps: 253.50 / 267.15 EUR
The Adidas share is on an upward trend. The paper is currently sprinting towards the resistance level of EUR 300. If the jump over the mark is successful, there is a chance of the upward movement continuing to EUR 316.65. On the downside, the share finds support between EUR 253.50 and EUR 267.16.
Adidas in EUR; Daily chart (1 candle = 1 day)
Observation period: 11.12.2019 – 16.12.2020. Historical considerations are not reliable indicators for future developments. Source: tradingdesk.onemarkets.de
Adidas in EUR; Weekly chart (1 candle = 1 week)
Observation period: December 17, 2015 – December 16, 2020. Historical considerations are not reliable indicators for future developments. Source: onemarkets.tradingdesk.de
Bonus cap certificates on the Adidas share for speculation that the stock will move sideways or moderately upwards
|Underlying||WKN||Selling price in EUR||Barrier in EUR||Cap (upper price limit) in EUR||Final valuation day|
|Adidas||HR40CQ||352.48||240.00||380.00||March 19, 2021|
Source: HypoVereinsbank onemarkets; Status: December 16, 2020; 10:23 am
Express Reverse Convertible Protect on the share of Adidas for speculation that the stock will move sideways
|Underlying||WKN||Issue price in EUR||Barrier in EUR||interest rate||final repayment date|
|Adidas||HVB4YZ *||100% of face value||70% **||4.0%||01/26/2024|
* In subscription until January 21, 2020 (subject to early closure); ** of the Reference Price on the Initial Observation Day; Source: HypoVereinsbank onemarkets; Status: December 16, 2020; 10:26 am
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The contribution Adidas – New plans and top events help the share on the jumps! first appeared on onemarkets blog (HypoVereinsbank – UniCredit Bank AG).
Author: Richard Pfadenhauer