Puma: Jefferies confirms buy rating
(CercleFinance.com) - Jefferies maintains its Buy rating on Puma shares, with an unchanged target price of E65.
The analyst says that Puma's Q3 results, which are due on 24 October, should keep pace with Nike's, at a time when investors are struggling to assess stock levels in the US.
"This is a key point as it will dictate the rate of mark-down recovery
in the quarters ahead. PUM should reassure on this front, even if volatility of sales regionally may be a talking point".
Against this backdrop, the analyst expects net sales to come in at E2,297m (below consensus of E2,373m).
"With the worst of cost rises behind us (but with a Q3 -ve offset from historic US$ strength), PUM should start benefitting from considerable product cost deflation in Q4", the analyst concludes, who models Q3 EBIT at E235m (vs. consensus of E242m).
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.
The analyst says that Puma's Q3 results, which are due on 24 October, should keep pace with Nike's, at a time when investors are struggling to assess stock levels in the US.
"This is a key point as it will dictate the rate of mark-down recovery
in the quarters ahead. PUM should reassure on this front, even if volatility of sales regionally may be a talking point".
Against this backdrop, the analyst expects net sales to come in at E2,297m (below consensus of E2,373m).
"With the worst of cost rises behind us (but with a Q3 -ve offset from historic US$ strength), PUM should start benefitting from considerable product cost deflation in Q4", the analyst concludes, who models Q3 EBIT at E235m (vs. consensus of E242m).
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.