The stock of Puma (DE:PUMA) jumped 14% on Sept. 17 amid speculation that the European sneaker maker is a takeover target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Multiple media reports say that two parties are preparing to make takeover offers for the German sportswear and shoemaker. Specifically, there are reports that the billionaire Pinault family of France is prepared to sell its 29% stake in Puma, clearing a path for a takeover of the company.
The companies interested in potentially acquiring Puma are privately held Authentic Brands, which already owns rival sneaker company Reebok, and private equity firm CVC Capital Partners. None of the named parties have commented publicly on a Puma takeover.
Family Sale
It has been reported that the Pinault family has been sounding out potential buyers for its roughly $960 million Puma stake. Rumors of a sale and takeover come with Puma’s stock down 58% this year. Like many retailers, the company has struggled with a pullback in consumer spending on discretionary items.
A potential takeover of Puma also comes amid industry consolidation. In the U.S., Dick’s Sporting Goods (DKS) recently completed its $2.4 billion acquisition of Foot Locker, a sneaker and athletic apparel retailer, as it looks to gain an edge in the wholesale sneaker market.
Is PUMA Stock a Buy?
The stock of Puma has a consensus Moderate Buy rating among three analysts. That rating is based on one Buy and two Hold recommendations issued in the last three months. The average PUMA price target of €2.95 implies 62% upside from current levels.
