Puma: Stifel lowers target price

(CercleFinance.com) - While confirming its 'buy' recommendation on Puma shares, Stifel has (significantly; -27%) reduced its target price for them from E59 to E43, in the wake of the profit warning issued last week, which has led the broker to cut its EPS estimates by around 18%.


In addition to the difference in tone with that displayed by the German sports equipment maker in November, Stifel highlights a lack of operating leverage in the last quarter of 2024, despite 10% organic sales growth.

It also points to a sharp deceleration in Latin America (around 15% of sales with higher profitability), from 20% or more in Q2 2024 to 7% in Q4, which has probably weighed on the geographic margin mix.


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