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Investing.com -- Bernstein has initiated coverage on Puma SE (ETR:PUMG) with an “outperform” rating, setting a price target of €24.
The brokerage described Puma as being at an “inflection point,” entering the lower end of the brand cycle after years of outpacing rivals.
Analysts said the company is currently working through inventory clearance, strategy resets and product development changes under its new chief executive, Arthur Hoeld, who took charge in July 2025 after a long career at Adidas.
The brokerage highlighted that sportswear remains a “boom and bust” industry, with consumer tastes shifting quickly.
Puma’s earlier successes, such as its Creeper line in 2016 and recent traction in lower-profile sneakers, were cited as examples of the cyclical nature of demand.
Analysts noted that the company is well-positioned to rebuild by leaning on its strong heritage in sports, including ties to athletes like Pelé, Usain Bolt and Neymar, while refocusing on fewer priorities, such as strengthening wholesale distribution, expanding direct-to-consumer sales, and investing in running and core sports.
Revenue forecasts show a steep decline, with sales expected to fall 14.4% in fiscal 2025 to €7.5 billion and another 5.4% in 2026, before a projected rebound in 2027.
EBIT margins are forecast to swing from 7.1% in 2024 to a decline of 3% in 2025, recovering to 4.8% by 2027.
Adjusted earnings per share are projected at a negative of €3.58 in 2025 and negative of €1.07 in 2026 before returning to positive territory in 2027 at €1.25.
Bernstein said the next catalysts include Hoeld’s strategy announcement in October 2025, the ongoing process of inventory clearance, and possible takeover interest. Despite the near-term challenges, the firm argued the risk-reward profile was “asymmetric,” with much of the negative news already priced in.
In order for Puma to turn around, analysts suggest focusing growth efforts on Europe, Latin America, and India while taking a more cautious approach in the United States.