Analyst John Kernan of TD Cowen maintained a Hold rating on PUMA SE NPV (PMMAF – Research Report), with a price target of €25.00.
John Kernan has given his Hold rating due to a combination of factors impacting PUMA SE NPV. The company’s performance in North America and China has seen a decline, attributed to specific factors, which has contributed to a significant drop in stock value. Additionally, the Free Cash Flow margin is notably low, affected by working capital management and a channel mix that requires improvement.
Despite an increase in sales since 2019, the incremental earnings before interest and taxes (EBIT) have not kept pace, and the market capitalization has regressed to 2016 levels. The company’s cash flow statement presents challenges in understanding future earnings potential. Furthermore, the athletic apparel and footwear sector, including peers like Nike and Adidas, is experiencing a period of low profitability, leading to a Hold rating across the board.
According to TipRanks, Kernan is a 5-star analyst with an average return of 8.2% and a 51.14% success rate. Kernan covers the Consumer Cyclical sector, focusing on stocks such as On Holding AG, Dick’s Sporting Goods, and Nike.
In another report released today, Oddo BHF also downgraded the stock to a Hold with a €25.00 price target.
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