adidas stock faces UBS warning over weaker 2027 growth

Published on 11/09/2026 at 10:47 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

adidas stock faces a tougher 2027 setup after UBS cut its rating to Sell. The bank sees fading footwear momentum and margin pressure as key risks.

UBS flags post-2026 risks

UBS downgraded adidas to Sell and lowered its 12-month price target to 156 euros.
The bank forecasts 4 percent foreign-exchange-adjusted sales growth for 2027, below the 7 percent analyst consensus.
UBS sees gross-margin and EBIT pressure from input costs, product mix and fading footwear momentum.

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UBS downgraded adidas from Neutral to Sell on November 3, warning that slowing footwear momentum and rising margin pressure could make the sportswear group's 2027 growth ambitions harder to achieve. The assessment was reported by Yahoo Finance.

UBS lowers 2027 expectations

UBS cut its 12-month price target to 156 euros from 160 euros. The bank said adidas shares had recovered about 20 percent from their early-October low, creating a wider gap between the valuation and the near-term earnings outlook.

UBS expects foreign-exchange-adjusted adidas sales to grow 4 percent in 2027, below the 7 percent analyst consensus. The bank said World Cup-related demand and new apparel launches could support about 10 percent sales growth in 2026, but those factors may mask a more difficult underlying consumer environment after the tournament.

The key operational concern is the fading momentum of the Terrace footwear range, while newer franchises such as Superstar and Stan Smith may not fully replace it. Lifestyle sales grew 4 percent in the first nine months of 2026, compared with 27 percent growth in performance products. Running growth also slowed to 19 percent in the third quarter from 28 percent in the second quarter, according to the UBS assessment.

Margin risks remain central

UBS forecasts a 2027 gross margin of 51.3 percent for adidas, below the 52.3 percent consensus. Higher oil-related input costs, a less favorable product and channel mix and the reversal of 2026 tariff-refund benefits are among the risks cited by the bank.

UBS estimates adidas' 2027 EBIT margin at 9.1 percent, compared with a 10 percent consensus estimate, and expects operating profit for 2027 and 2028 to remain more than 10 percent below market expectations. The bank also pointed to the company's exposure to oil-linked raw materials and possible currency pressure as hedges roll through in 2028.

The real-time quote of adidas stock was 173.85 euros on Lang & Schwarz at 10:41 CET on Monday, November 9, 2026, 0.40 percent below the Xetra close of 174.55 euros on Friday, November 6. For investors, the central issue is whether performance and apparel demand can offset weaker lifestyle footwear momentum once the World Cup effect fades.