RBC Updates Model for Adidas After Preliminary Q3 Results

07:26 AM EDT, 10/21/2026 (MT Newswires) -- RBC Capital Markets revised its model for adidas (ADS.F), tweaking its earnings forecasts to reflect the German sportswear maker's preliminary third-quarter results and spot currency movements. "ADS has pre-announced 3Q26 results, with a healthy 9% underlying EBIT beat. ADS also raises FY26 EBIT guidance to EUR2.5bn which is largely due to a EUR200m US tariff refund, whilst the anticipated EUR100m underlying above plan profit ADS expect to deliver will be fully reinvested in 4Q26 to accelerate growth initiatives, which we view as the right mid-term strategy. We continue to like ADS given its strong brand momentum and execution in a mixed consumer environment, attractive earnings growth outlook and valuation," analysts said Tuesday. Against this backdrop, the research firm revised its reported full-year 2026 EBIT estimate upward to 2.5 billion euros to incorporate the tariff credit and 100 million euros in one-off accelerated operating investments, while the adjusted EBIT forecast remains unchanged at 2.4 billion euros, with an 8.9% margin. Analysts also trimmed their EBIT and EPS assumptions for full-year 2027 and 2028 by 1% each. Ahead of the final third-quarter results due on Oct. 29, RBC reiterated its outperform rating and price target of 200 euros on the stock.