Puma: Stifel still a buyer, but trims TP
(CercleFinance.com) - Stifel maintains its "buy" rating on Puma shares, although has trimmed its target price for them from E80 to E78, the day after the stock plunged 11.
5% on discussions that dashed hopes of an increase in annual targets at the next quarterly update.
While the broker believes that the German group's 2023 targets are not at risk, it has reduced its own earnings estimates by 4%, and now expects 2023 EBIT of E630m, which is in the middle of the target range of E590m-E670m.
"After two years of margin contraction, we expect PUM like NKE ($95.79 covered by Jim Duffy) to show further evidence of gross margin inflection", Stifel says however, which hence expects a gain of 170 bp in 2024 (vs. consensus of 110 bp).
Copyright (c) 2023 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.
5% on discussions that dashed hopes of an increase in annual targets at the next quarterly update.
While the broker believes that the German group's 2023 targets are not at risk, it has reduced its own earnings estimates by 4%, and now expects 2023 EBIT of E630m, which is in the middle of the target range of E590m-E670m.
"After two years of margin contraction, we expect PUM like NKE ($95.79 covered by Jim Duffy) to show further evidence of gross margin inflection", Stifel says however, which hence expects a gain of 170 bp in 2024 (vs. consensus of 110 bp).
Copyright (c) 2023 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.