Adidas - German Manufacturers Are Optimistic About The Stock Market.

CACheuvreux J analyst J rgenKolb recently gave German clothing manufacturers.

(Adidas) group stock "win the outperform" rating.

The target price of the group's shares is 66 euros.

HerbertHainer, chief executive of Adidas group, said in an interview with the media that the group is committed to reducing product mix.

The number of products will be reduced by 25%.

In addition, the group will implement promotional plans with 3D advertising screens in the next 18 months and reduce the stock of branch stores.

It is estimated that the production cost of the group will be saved by tens of millions of euros.

Hainer's above statement is Adidas group's strategic renewal. The group will use these strategies to achieve a pre tax profit margin of 11%.

A spokesman for the group said Adidas group would increase its profit margin from 7.6% to 11% in 2015 with the help of the above measures.

At the same time, the group is also committed to increasing sales to 17 billion euros in the first ten years of this century. The group's sales in fiscal 2011 are about 13 billion euros.

Half of the growth in future sales will be in China, Russia and the United States, where teenagers, runners and basketball enthusiasts are moving.

Sales will also increase.

Thus, analysts from Paris Sheng Fu securities (CACheuvreux) gave Adidas group.

"Win the market" rating.

After the German central bank raised its share price, Adidas group's stock price began to rise on Monday (May 7, 2012).

The group's stock price rose 0.9%, which is the winner of the Dax index during this period.

Analyst HerbertSturm said Adidas group's expansion in Russia, Asia and especially China in the next few years will exceed analysts' expectations. This has led analysts to raise the forecast value of pre tax profit margin of Adidas group in fiscal year 2013 from 8.6% to 8.9%, and the pre tax profit margin forecast for 2014 fiscal year increased from 9.3% to 9.5%.

Analysts therefore raised the fair value of Adidas group's shares from 65 euros to 68 euros and gave a "buy" rating.