Puma stock did not have a good start to the new stock market year in 2024. Initially, weaker numbers from international competitors weighed down Puma, and then the preliminary figures for the past fiscal year caused a significant drop in price. However, recently there has been a slight recovery. Since the beginning of February, the Puma stock has risen by around 10 percent to over 41 euros (as of February 12, 2024, around 3pm).

Whether this is already a real turnaround for the Puma stock remains to be seen. Most analysts are looking less optimistically at the stock, with UBS and RBC Bank, for example, significantly reducing their price targets. New impulses for the sports equipment manufacturer’s stock could come from the final figures for 2023, which are expected on February 27.

Puma: Preliminary business figures do not convince According to preliminary figures, Puma generated approximately 8.6 billion euros in revenue in fiscal year 2023, about 6.6 percent more than the previous year. Previously, the company had expected growth in the high single-digit percentage range. The EBIT also did not quite meet expectations for the MDAX company.

At around 622 million euros, it was quite a bit below the previous year’s value of 641 million euros. Puma had expected an EBIT between 590 and 670 million euros. One reason for the weaker result is the devaluation of the Argentine peso in Q4. Without these effects, Puma’s EBIT would have been above the previous year’s result, according to the company.

For the current year 2024, Puma points to the continuing uncertainties. In the full year, revenue is expected to grow in the mid-single-digit percentage range. EBIT is expected to be between 620 million and 700 million euros.

Puma stock: Lots of shadows, little light Above all, the forecast for the current year has disappointed some investors. For the sports equipment manufacturer, 2024 could be another transitional year and not necessarily a breakthrough year. Although the Puma stock is currently relatively cheap compared to the performance of the last 2 years, it does not necessarily mean that the stock will soon rise again.

Good news – also in terms of better margins – is needed. In the latest analyses, the experts currently see little room for maneuver for the Puma stock. Barclays has initiated coverage of the stock for the first time with a target price of 42 euros, while UBS and RBC have drastically reduced their price targets from 60 to 41 euros and from 64 to 42 euros, respectively.

Source: https://aktienscreener.com