Analyst William Woods of Bernstein maintained a Buy rating on PUMA SE NPV, retaining the price target of €24.00.
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William Woods has given his Buy rating due to a combination of factors that suggest a positive outlook for Puma SE. The company is at a crucial turning point, with a new CEO taking decisive actions to reset expectations and clear inventory, which is essential for implementing a new strategy. Woods anticipates that the upcoming strategy updates will provide clarity on Puma’s transition year and the extent of expected sales decline, which is crucial for aligning market expectations.
Furthermore, Woods believes that Puma’s management is focusing on revitalizing key areas such as product development, brand marketing, and distribution channels. The emphasis on growth over margin during this rebuilding phase is seen as a positive step. Additionally, the mid-term strategy update is expected to show a concentrated effort on regions and segments where Puma has a competitive advantage, such as LATAM, India, and Europe, while addressing challenges in the US market. This focused approach, along with the potential for a positive catalyst from the Q3 results, supports the Buy rating with a target price of €24, indicating a 13% upside.
In another report released on October 16, Warburg Research also maintained a Buy rating on the stock with a €35.00 price target.