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Investing.com - Rothschild Redburn downgraded Puma SE (ETR:PUM) (OTC:PMMAF) from Buy to Neutral on Monday, setting a price target of EUR24.00. The downgrade aligns with InvestingPro data showing three analysts revising earnings downward and a steep 52.48% year-to-date price decline.
The downgrade reflects the investment firm’s assessment that "Puma, the brand and the business, has proved more fragile than expected," with opportunities previously identified by analysts now manifesting as challenges.
Rothschild Redburn’s price target of EUR24.00 represents a valuation of 0.8 times the company’s estimated 2026 sales, suggesting limited growth expectations in the medium term.
The firm noted that while Puma’s current enterprise value of under EUR4.5 billion seems undervalued for a brand of its scale and reach, the path to "sustained premium sales growth and sensible financial returns" could be "both treacherous and long."
Rothschild Redburn indicated it would reconsider its position on the sportswear manufacturer after hearing more about the company’s strategy and priorities going forward.
In other recent news, Puma SE’s financial landscape has seen several significant developments. Bernstein initiated coverage on Puma with an Outperform rating, setting a price target of EUR24.00. The firm believes Puma is nearing the bottom of its brand cycle, with the new CEO taking steps to reset expectations. Meanwhile, JPMorgan downgraded Puma from Neutral to Underweight, lowering its price target to EUR16.00. This downgrade is based on challenges Puma faces in its business turnaround, including inventory reduction and distribution network strengthening under the new CEO. In contrast, UBS upgraded Puma from Sell to Neutral, raising its price target to EUR20.90. This upgrade follows news about potential changes to Artemis’s 29% ownership stake in Puma, which UBS suggests could shift investor focus. These developments indicate varied analyst perspectives on Puma’s current business trajectory.
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