Markets are called to open lower this morning. The drop in the markets is caused by:
- Industrial metals are falling as expanding stockpiles in China, the biggest consumer, add to a raft of data that signify a broad slowdown. The country’s lawmakers are meeting to set economic policy amid growing credit risks that saw the country’s first onshore bond default last week.
- Better-than-estimated U.S. payrolls figures on March 7 bolstered the case for continued reductions in Federal Reserve stimulus.
- In Crimea, Russian troops detained Ukrainian border guards amid an ongoing standoff as the region prepares a referendum on joining Russia.
Stock to watch: Adidas (Calamatta Cuschieri 12-month Price Target increase to €98.27)
We increased our price target on Adidas from €93.53 to €98.27 for the next 12-months. We are confident in the products the Group has on offer and believe they will do well in the coming years. Despite the negative currency headwinds, we don’t expect to see the same levels of weakness as we have seen till Q114.
We expect Adidas to perform better in H214. At this stage we are using the current weakness to cautiously add Adidas to our holdings. We believe that Adidas should be a core holding representing the retail sector. However, continued weakness in the stock has dented our long term confidence. We will keep monitoring the stock and adjust our model accordingly.
For a copy of our latest report on Adidas log onto webtrader or contact our offices on 25688688.
Companies in Europe reporting results today:
• Helvetia (HELN SW) 7am
• Iliad (ILD FP) TBD
• Symrise (SY1 GR) 7am
Companies we follow which report results later on this week:
- Deutsche Post (wednesday – FY13 results out)
- Deutsche Lufthansa (Thursday – FY13 results out)
Good day and happy trading!
The Calamatta Cuschieri Traders Blog is available daily on CC WebTrader. Other market coverage including coverage of the International Bond Markets is also available.
The information provided on this website is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Similarly any views or opinions expressed on this website are not intended and should not be construed as being investment, tax or legal advice or recommendations. Investment advice should always be based on the particular circumstances of the person to whom it is directed, which circumstances have not been taken into consideration by the persons expressing the views or opinions appearing on this website. Calamatta Cuschieri & Co. Ltd. (CC) has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website. You should always take professional investment advice in connection with, or independently research and verify, any information that you find or views or opinions which you read on our website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. CC does not accept liability for losses suffered by persons as a result of information, views or opinions appearing on this website.
This website is owned and operated by Calamatta Cuschieri & Co. Ltd (Co. Reg. No. C13729) of 5th Floor, Valletta Buildings, South Street, Valletta VLT 1103, Malta. CC is licensed to conduct Investment Services in Malta by the Malta Financial Services Authority.