Puma: Credit Suisse cuts target price
(CercleFinance.com) - Credit Suisse has reduced its EPS estimates by 18% for FY 2010, after taking into account the impact of coronavirus in all regions, resulting in an 8% y-o-y fall in earnings.
"A recovery for Puma - helped by strong brand momentum - should be pronounced the following year and we expect the business to recover the lost gross margin as well as much of the likely loss in earnings in FY21 (EPS +25%)," the broker says.
"However, we see limited upside potential until the extent of economic disruption caused by the virus is clear and consumer behaviour starts normalising," it adds.
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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.
"A recovery for Puma - helped by strong brand momentum - should be pronounced the following year and we expect the business to recover the lost gross margin as well as much of the likely loss in earnings in FY21 (EPS +25%)," the broker says.
"However, we see limited upside potential until the extent of economic disruption caused by the virus is clear and consumer behaviour starts normalising," it adds.
Copyright (c) 2020 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.