Undervalued Growth and Strategic Upside: Why David Hayes Reiterates a Buy on Puig

In a report released today, David Hayes from Jefferies reiterated a Buy rating on Puig Brands, S.A., with a price target of €20.60.

David Hayes has given his Buy rating due to a combination of factors that point to continued outperformance versus market expectations. He forecasts organic sales growth ahead of consensus, underpinned in particular by a still-solid outlook for the company’s fragrance portfolio despite concerns about the broader cycle normalising. He also views the expansion of Charlotte Tilbury on Amazon as a positive strategic step that should broaden reach and support incremental growth rather than dilute brand equity. In addition, he highlights optionality from potential acquisitions in skin care, which could further diversify the business and enhance the growth profile.

At the current share price, Hayes believes the market undervalues Puig, as reflected in a next-twelve-months P/E multiple he considers too low relative to its growth prospects and brand strength. His analysis suggests meaningful upside if the valuation moves closer to peers, implying a re-rating opportunity. However, he notes that this upside depends on the company executing consistently and rebuilding investor confidence through steady delivery against targets. Taken together, these growth, strategic, and valuation arguments justify his continued Buy recommendation on the stock.