Puma: AlphaValue cuts target price

(CercleFinance.com) - On Friday AlphaValue reduced its target price for Puma shares to 83.
9 euros, from 96.7 euros previously, due to uncertainty surrounding the current economic situation.

In its comments, the broker - which has a "hold" rating on the stock - points out that supply problems and the delicate context in China had already weighed on the group's performance in H2 2021.

AlphaValue expects that the persistence of logistical problems, combined with inflationary pressures and geopolitical uncertainties, will continue to penalise the sports equipment manufacturer's business this year.

The Parisian broker is particularly concerned about the boycott movement affecting Xinjianget cotton and the recent resurgence of Covid in China, which it believes will affect the pace of growth in the near term, leading it to refuce its earnings forecasts for the group.

The market seems even more cautious about the share, which is currently down over 3% in Frankfurt.



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