Analyst William Woods of Bernstein maintained a Buy rating on PUMA SE NPV, retaining the price target of €24.00.
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William Woods has given his Buy rating due to a combination of factors that suggest Puma is at a pivotal moment in its brand cycle. Despite facing challenges from emerging competitors and the natural ebb and flow of brand popularity, Puma is positioned at the lower end of its brand cycle, which presents an asymmetric risk/reward opportunity. The arrival of a new CEO who is taking proactive measures to manage expectations is seen as a positive step towards stabilizing and potentially revitalizing the brand.
Woods believes that Puma’s strong legacy in sports, coupled with its brand recognition and early success in certain product categories, provides a solid foundation for future growth. The focus on leveraging geographical strengths and maintaining a concentrated strategy on sports investment and innovation is expected to drive brand momentum. Upcoming strategic announcements and potential market catalysts, such as inventory management and franchise growth, further support the Buy rating, with a target price reflecting significant upside potential.