Rehabilitation Efforts by DAX & Co - Leading Companies PVA Tepla and Adidas at the Forefront

German Stock Market Update: Adidas Shines Amidst Challenging Conditions

In a positive development for the German stock market, Adidas (WKN: A1EWWW) emerged as the top performer on the DAX, with a 4.4 percent gain. James Grzinic, an analyst at Jefferies, issued a buy recommendation for Adidas's stock, citing the company's potential as a winner in terms of tariffs and dollar weakness. However, concerns about Adidas's high dependence on terrace products are reportedly overblown, according to Grzinic.

Despite the resilience shown by the DAX, which repeatedly recovered above 24,000 points faster than expected, according to capital market strategist Jürgen Molnar of Robomarkets, the market has faced a mix of risks. European trading has been challenging due to uncertainties surrounding U.S. presidential trade and economic policy, the ongoing Ukraine war, monetary policy uncertainty, and France's political and financial situation.

PVA TePla (WKN: 746100) in the SDAX also saw a significant movement. After a setback the previous day, PVA TePla resumed its rally, jumping nearly 15 percent to its highest level since spring 2022. This rally was supported by positive views expressed by both Deutsche Bank and Oddo BHF, with Deutsche Bank calling PVA TePla's previous day's capital market day a "positive surprise," while Oddo saw the previous day's price drop as a "buying opportunity."

On the other hand, Puma (WKN: 696960) faced a setback, with its stock being downgraded by Wendy Liu, the new JPMorgan analyst responsible for German sportswear manufacturers, to "underweight." Puma's stock was one of the few losers in the MDAX, falling by 3.5 percent due to significant implementation risks in the company's transformation.

The MDAX, another German index, gained 0.4 percent to 29,731.32 points. However, the best and worst performers on the last trading day in the SDAX were not provided in the available data.

Meanwhile, an impending pilot strike weighed on Lufthansa's (WKN: 823212) stock, causing it to fall by 0.4 percent. Elsewhere, Continental's (WKN: 543900) stock lost 2.5 percent due to a more pessimistic outlook for the auto supplier and tire manufacturer's share price than the experts at Oddo BHF.

Bernstein Research downgraded Puma to "underperform," adding to the risks that have largely been ignored on the market so far. The DAX failed to overcome its moving average and closed at 23,594.8 points, up 0.5 percent. Despite the JPMorgan lowering Adidas's price target, the company still maintains an "overweight" rating and is marked as a "positive catalyst watch" ahead of its third-quarter report.