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Investing.com - Bernstein has maintained its Outperform rating and €24.00 price target on Puma (ETR:PUM) (OTC:PMMAF) as the sportswear company approaches what the research firm describes as an "inflection point" in its brand cycle.
The firm notes that Puma’s new CEO has taken "decisive action" to reset expectations and is currently clearing inventory to implement a revised strategy. Bernstein expects management to clarify previous comments about fiscal year 2026 being a "transition year" during the upcoming Q3 results presentation.
Bernstein’s analysis projects a slightly steeper sales decline than consensus estimates, forecasting a 3% decrease in constant currency compared to the consensus of 2%. The firm also models an operating loss for Puma, contrasting with the consensus expectation of a positive 2% margin.
The research firm emphasizes that Puma’s management should focus on growth rather than margins as the company enters a rebuilding phase. Bernstein suggests management needs to demonstrate a commitment to revitalizing product development, improving brand marketing, and refining distribution channels.
For the mid-term strategy update expected in the first half of 2026, Bernstein recommends that Puma’s management concentrate on fewer areas where the company has competitive advantages, particularly prioritizing Latin America, India, and Europe markets while fixing its U.S. business and deprioritizing China.
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