Bernstein analysts say that Lionel Messi’s move to play for Inter Miami could push Adidas stock prices up to 30%.

According to Bernstein analysts, Lionel Messi’s move to the US to play will increase the capitalization of Adidas sports company by tens of billions of dollars. Analysts have changed their recommendations for Adidas stock, the clothing partner of the American Major League Soccer (MLS), after the news that Messi suddenly joined the Inter Miami FC team this summer.

In a report sent to clients on June 11, Bernstein’s team of analysts, led by Aneesha Sherman, changed their recommendation from “hold” to “sell” for the German sportswear company’s shares, raising the price. target to 112 USD/share, an increase of 23%.

Thanks to that, Adidas’s stock price increased by 30%, from 86 USD after closing the trading session on June 9. The price is forecast to reach the highest level in the past 14 months and Adidas’ capitalization value will increase by approximately 10 billion USD.

Lionel Messi can create a big boost for Adidas’ business when joining the US MLS. Photo: Fifa via Getty Images.Bernstein’s team of analysts said that Messi’s move to MLS will definitely “boost Adidas’ market share” in the US market, thanks to the partnership between this sports company and the Argentine superstar, MLS and David. Beckham – co-owner of Inter Miami. In addition, Inter Miami recorded a spike in followers on social networks after announcing that Messi joined the team.

Information related to Lionel Messi is not the only reason why Aneesha Sherman is optimistic about Adidas’ prospects. Investors are still optimistic thanks to higher-than-expected profits, with the boost from improving profit margins and increased popularity in the Chinese market, as well as the Yeezy shoe line still maintaining its appeal.

During the trading session in Berlin, Germany on the morning of June 12, Adidas stock price increased by 5%, largely due to the optimistic assessment of Bernstein analysts.

According to Athletic, Adidas will give Messi a portion of the profits when he accepts the invitation to join MLS. Apple, which exclusively broadcasts MLS matches on its Apple TV premium platform, will also have similar deals for Messi, Athletic and the Wall Street Journal.

Adidas expects the partnership with Lionel Messi to help its stock increase significantly, after the company experienced a difficult 2022 in its partnerships with big-name stars.

In October 2022, Adidas severed its partnership with Kanye West, who oversaw the extremely successful Yeezy shoe line, after the male rapper made anti-Semitic statements. This incident affected Adidas’ reputation, causing the company to lose hundreds of millions of dollars.

In the fourth quarter of 2022, Adidas reported a loss of 635 million USD, with sales down 2% and 16% compared to the same period in 2021 and 2020, respectively. Adidas shares have evaporated 50% of their value from their peak in mid-2020. 2021.