Puig Brands: Buy Rating on Charlotte Tilbury-Led Growth, Margin Expansion and Valuation Upside

Analyst David Hayes from Jefferies maintained a Buy rating on Puig Brands, S.A. and increased the price target to €21.00 from €20.60.

David Hayes has given his Buy rating due to a combination of factors that support both growth and profitability at Puig Brands, S.A. He expects the company to meet the midpoint of its organic sales growth guidance, with a solid 6–8% range, while also modestly improving its operating margin year over year. A key driver of this outlook is the strong trajectory of the Charlotte Tilbury brand, particularly as the makeup segment shows signs of accelerating, where Puig appears well positioned to capture incremental demand.

Despite the company stepping up its advertising and promotional spending, Hayes still anticipates margin expansion, highlighting operational leverage and disciplined cost management. Reflecting this constructive view, he raises his price target to €21, suggesting further upside from current trading levels. This new target also assumes a re-rating of the shares on a next‑twelve‑month P/E basis, indicating his confidence that the market will increasingly recognize Puig’s fundamental strengths and earnings potential. Overall, these elements underpin his conclusion that the stock offers an attractive risk‑reward profile at present, justifying a Buy recommendation.

Hayes covers the Consumer Defensive sector, focusing on stocks such as Unilever, Reckitt, and DANONE SA. According to TipRanks, Hayes has an average return of 1.8% and a 53.85% success rate on recommended stocks.