Puma: Despite Profit Decline, Potential Share Price Increase of 87%

Last Updated: 21. November 2023By

Did you know that in 1948 the Dassler Brothers Shoe Factory was split and from that Puma and Adidas were created? In the meantime, both companies are internationally active sporting goods manufacturers. Puma produces shoes, textiles and accessories. Puma’s product range includes numerous products for indoor and outdoor use. How did the company perform in the last quarter?

Puma Reports Profit Decline For the 3rd quarter, the company reported a turnover of 2.31 billion euros compared to 2.35 billion euros in the previous year. Net profit amounted to 131.7 million euros, compared to 146.4 million euros a year ago. Earnings per share from continuing operations was 0.88 euros compared to 0.98 euros in the previous year.

Middle East Conflict Influences Annual Forecast „We remain conservative. There is too much uncertainty in the world,“ says Arne Freundt, CEO of Puma. It is uncertain how the Middle East conflict will affect consumer sentiment, and the economy in China is only recovering slowly. Therefore, the company does not want to raise expectations for the current year.

Annual Forecast Remains Intact However, the company continues to plan a high single-digit percentage increase in turnover for the full year and an operating profit before interest and taxes of between 590 and 670 million euros.

Can the sports stock really gain up to 87%? Conclusion: If you look at the chart of Puma, it looks more like a hurdles race. With a bit of goodwill, a small uptrend can still be seen. Despite the uncertain situation from the Middle East conflict, the mood among analysts is predominantly positive. 14 out of 21 analysts recommend buying and 7 want to hold. The average analyst target price is 68 euros, the highest even 99 euros – for you potential upside of more than 87%. The dividend yield of 1.83% is negligible for you as an investor. More important is: The 2024 P/E ratio of 15.6 is significantly lower than last year’s almost 24.