Messi’s MLS stint contributes to Adidas’ growth story that will help it tack on about $10 billion in market value, according to Bernstein analysts.
Lionel Messi’s high-profile migration to the U.S. will help justify tens of billions of dollars in added market capitalization for Adidas, according to Bernstein analysts, upgrading its rating for Major League Soccer’s apparel partner ahead of Messi’sFIFA via Getty ImagesIn a Sunday note to clients, analysts led by Aneesha Sherman upgraded Adidas from a hold to a buy, raising their price target for the German apparel giant by 23% to $112.
That implies 30% upside for Adidas from its $86 share price at Friday’s market close, projecting the stock to hit a 14-month high and for the company to tack on roughly $10 billion to its market value. Bernstein said Messi joining MLS is “likely to drive U.S. market share” for Adidas, citing the brand’s sponsorship of the superstar, the American soccer league and Inter Miami’s celebrity co-owner David Beckham, as well as Inter Miami’s astronomical growth on social media in the wake of Messi’s announcement.
The Messi-related upside was just one component of Sherman’s bullishness for Adidas, as also contributing to the upgrade were above-consensus profit estimates thanks to improving margins and signs of increased popularity for the brand in China as well as a steadiness in the popularity of its former Yeezy line.5%. That’s how much Berlin-listed shares of Adidas jumped Monday, a bump largely tied to Bernstein’s bullishness.
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