Billionaire Ray Dalio is Shorting These 5 European Stocks

1. adidas AG (OTC:ADDYY)

adidas AG (OTC:ADDYY) is a German manufacturer of apparel, fashion accessories, and footwear. The company has the distinction of being the biggest sportswear manufacturer in Europe and the second biggest globally behind NIKE, Inc. (NYSE:NKE).

Analyst sentiment on the stock is not too optimistic. On June 14, Erwan Rambourg at HSBC downgraded adidas AG (OTC:ADDYY) stock from a Buy to a Hold rating and slashed the target price from €270 to €200. On a per ADS basis, the target price has been reduced from $143 to $106. The analyst cited COVID-19-related lockdowns in China, an adverse shift in foreign exchange, and inflationary pressures as the reasons for revising the rating and target price. Rambourg also thinks that the guidance of the sportswear company is at risk.

adidas AG (OTC:ADDYY) was discussed in the Q1 2022 investor letter of Polen Capital. Here’s what the firm said:

“We added to the Portfolio’s position in adidas AG as we believe the company’s management team is making strides in positioning the company for faster growth. Innovative product development, along with interesting design and marketing collaboration initiatives, have been unlocking the company’s growth potential.

We also believe the continuing shift away from wholesale distribution to direct-to-consumer sales should drive steady margin progress. We estimate that adidas will grow earnings in the high teens annually over the next five years.”

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