1313 GMT -- Adidas is among the most mentioned companies across news items over the past 12 hours, according to Factiva data. The German sporting goods company said Monday that Kasper Rorsted would step down as CEO next year. The news caused surprise, but analysts generally took a favorable view. Mr. Rorsted extended his contract two years ago until 2026, but the last three years haven't been the easiest for the company, Stifel analyst Cedric Lecasble says in a research note. The move, therefore, makes sense given the company's poor share performance and recent profit warnings, he says. "Perhaps the market would have appreciated more pragmatic and less ambitious targets," Lecasble says. Major disruptions so far this year, including Covid-19 pandemic lockdowns in China, mean that the company's mid-term guidance is possibly unattainable, RBC Capital Markets analyst Piral Dadhania says in a note. "We would likely expect the incoming CEO to reset mid-term 2025 targets," Dadhania says. Dow Jones & Co. owns Factiva. (pierre.bertrand@wsj.com)


(END) Dow Jones Newswires

08-23-22 0928ET