Adidas AG fell the most in more than four months in Frankfurt trading after Deutsche Bank AG cut its recommendation and said the sporting-goods maker may struggle to meet its 2015 sales goal because of the euro’s strength.
Deutsche Bank downgraded the stock to hold from buy, sending the shares down as much as 4.4 percent. The decline was the steepest since Feb. 26.
“Almost all currencies have developed to the disadvantage of Adidas lately,” Frankfurt-based analyst Michael Kuhn wrote in a report today, citing weakness of the Russian ruble, Japanese yen and the Brazilian real against the euro. Should rates fail to improve, Adidas will find it tough to reach its 17 billion-euro ($22 billion) revenue target for 2015, he said.
Adidas, based in Herzogenaurach, Germany, makes more than 70 percent of its sales outside western Europe.
“The company has huge international sales exposure, and almost every currency has developed to its disadvantage, massively hitting its profit generation ability,” Kuhn wrote.
Deutsche Bank cut its operating profit forecast for 2013 by 10 percent to 1.3 billion euros. More than 80 percent of the cut was because of recent currency movements, the analyst said.
The shares were down 3.8 percent at 80.63 euros as of 10:30 a.m., the second-biggest drop in Germany’s benchmark DAX Index.