Bernstein analyst William Woods maintained a Buy rating on PUMA SE NPV today and set a price target of €24.00.
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William Woods has given his Buy rating due to a combination of factors that suggest Puma is at a pivotal moment in its brand cycle. Despite facing challenges after years of growth, the arrival of a new CEO has led to strategic decisions aimed at resetting expectations, which Woods views as a positive step. Although there is anticipated volatility in the short term, the potential for a favorable risk/reward scenario is evident, as reflected in the stock’s current valuation compared to its peers.
Woods believes that Puma’s strong brand history provides a solid foundation for a successful turnaround, with early indications of renewed brand interest, particularly in the running segment. The stock’s valuation on an EV/Sales basis suggests it is nearing the bottom, offering an attractive entry point for investors. The primary concern remains the inventory clearance cycle, but Woods is optimistic about the new CEO’s strategic focus, which could enhance the company’s performance and positively impact the stock price.