Analyst John Kernan of TD Cowen maintained a Hold rating on PUMA SE NPV, with a price target of €16.00.
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John Kernan has given his Hold rating due to a combination of factors impacting PUMA SE NPV. The company is facing significant competitive pressures within the sector, which are contributing to a downward trend. This challenging environment, coupled with PUMA’s cash burn and operating losses, suggests a potential need for a capital raise in the near future, estimated at €500 million by the fourth quarter of 2026. Additionally, the company’s reliance on the wholesale channel, which constitutes a substantial portion of its sales, complicates the path to profitability.
Despite the announcement of a broad restructuring strategy by PUMA’s CEO, Arthur Hoeld, the plan lacks specific targets and timelines, making it difficult to gauge its potential effectiveness. Management’s guidance for fiscal year 2025 indicates a revenue decline and an operating loss, which aligns with consensus expectations but suggests a steep revenue contraction. The forecast for fiscal year 2026 appears optimistic, with risks of downward revisions due to the complexity of the brand’s strategic transformation. These factors contribute to the Hold rating, as the outlook remains uncertain and the company needs to prioritize aligning its working capital effectively.
In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a €22.00 price target.