Investing.com -- Baird upgraded  Adidas AG  (ETR:ADSGN) and  Wolverine World Wide Inc  (NYSE:WWW) to Outperform saying it sees an improved risk/reward after stock pullbacks. It also said there was a growing confidence in brand momentum, conservative forecasts, and manageable tariff exposure.

Global apparel and footwear brands have dropped 31% year-to-date and 49% from their 52-week highs, underperforming the broader market. 

Baird believes the recent pullback presents an attractive entry point, particularly for quality names with visible fundamental drivers and limited earnings risk.

Adidas (OTC:ADDYY) was upgraded after a 25% decline from recent highs. 

Baird said company meetings reinforced confidence in the brand’s broadening strength across lifestyle and performance segments. 

The firm noted improving wholesale relationships, limited U.S. tariff exposure, and what it called “conservative” 2025 earnings guidance. 

It sees potential for more than €11 in earnings per share by 2026, supporting an upside case for the stock to reach the high-€200s, based on a mid-20-times earnings multiple.

Wolverine World Wide was also upgraded, with Baird highlighting a 55% drop from peak levels despite minimal direct China-to-U.S. sourcing and low expectations for growth at Saucony, its performance and lifestyle footwear brand. 

Baird said Saucony’s recent strength and broader distribution gains offer upside, and the company’s gross margin drivers appear sustainable into 2025. 

The firm values Wolverine at over $20 per share in a favorable scenario, based on more than 10 times projected EV/EBITDA.

Baird maintained Outperform ratings on  Planet Fitness Inc  (NYSE:PLNT), On Holding AG,  Deckers Outdoor Corp  (NYSE:DECK), Boot Barn (NYSE:BOOT), Amer Sports,  Crocs  (NASDAQ:CROX), and  Nike  (NYSE:NKE) remain high-conviction “Bullish Fresh Picks.”

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