Puma: UBS initiates coverage with 'buy' - targets 550 euros
(CercleFinance.com) - UBS has begun its coverage of the German sports equipment manufacturer Puma stock with a buy rating, which it hails for its growth.
The broker has a 12-month target price of 550 euros, representing upside potential of 12.5%.
It's been about two weeks since Puma's float has leapt from around 14% to 55%, after Kering's spin-off. UBS is therefore now looking at the world's fourth-largest sports equipment supplier. "We believe Puma's profit potential is underappreciated based on the turnaround executed to date, broad innovation pipeline and favourable market dynamics."
According to analysts, Puma is well on track to report sales growth of approximately 12% by 2020, which would be accompanied by a leverage of its margin and 35% EPS growth.
UBS also notes that the Puma share is currently trading at a discount of around 15% relative to Adidas, in terms of enterprise value/sales.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker has a 12-month target price of 550 euros, representing upside potential of 12.5%.
It's been about two weeks since Puma's float has leapt from around 14% to 55%, after Kering's spin-off. UBS is therefore now looking at the world's fourth-largest sports equipment supplier. "We believe Puma's profit potential is underappreciated based on the turnaround executed to date, broad innovation pipeline and favourable market dynamics."
According to analysts, Puma is well on track to report sales growth of approximately 12% by 2020, which would be accompanied by a leverage of its margin and 35% EPS growth.
UBS also notes that the Puma share is currently trading at a discount of around 15% relative to Adidas, in terms of enterprise value/sales.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.