Today‘s Morning Meeting

Research evidence excerpt

Today‘s Morning Meeting

Europe Equity Research

Europe First to Market 02 July 2026

Today’s Morning Meeting | Also Published Today | Key Changes | JPM Events | Upcoming Earnings

Today’s Morning Meeting

CW | European Sporting Goods (Wendy Liu)

Keep delivering - Reinstate On as OW and Place on Positive Catalyst Watch, adidas as OW, JD as N,

and Puma to N

In this report, we assess the growth outlook, execution risk and risk/return asymmetry for adidas, On, Puma and JD Sports,

leveraging data, discussions with the companies, as well as our own channel checks and expert calls. While the macro remains

dynamic and the competition remains intense, we expect a slower Nike (covered by Matthew R. Boss, see his thoughts here

following Nike’s Q4 results this week) comeback to extend the window for current market share winners to keep winning.

In our coverage universe, we expect the solid momentum at adidas (+14% topline growth, +16% EBIT growth in Q1) and On

(+26% topline growth, +45% adjusted EBITDA growth) to continue. The asymmetry of risk/return for both adidas and On is

more attractive today following the sell-off over the last 12 months (adidas -13%, On -32%), with 14x and 16x 2Y forward P/E

respectively on concerns about whether these companies are “nearing the end of their high growth phase”. We expect a

consistent delivery of earnings growth over the coming quarters to support an upward re-rating of both companies. On the other

hand, we continue to see execution risk in the turnaround at Puma and JD Sports, but we note that the bar has been reset to

lower levels, which should provide downside protection. We resume our rating for On as OW and place it on Positive

Catalyst Watch, as we see potential for above-consensus Q2 delivery (JPMe Q2 adj.