Puma stock: Opportunities in 2024

Last Updated: 5. Januar 2024By

Puma stock, unlike the majority of stocks, did not experience an end-of-year rally on the stock market. And the start into the new year of 2024 was also not successful. The stock is currently trading around 8 percent lower (as of January 5th, 2024, approximately 9am) after disappointing news from competitors this week.

Despite this, Puma’s business is doing well and there is reason for optimism for the current year. The Puma stock is currently comparatively cheap โ€“ over the course of the year, the stock has seen a decrease of over 20 percent. Analysts also see potential for the stock in the coming quarters.

Puma: Poor numbers from competitors weigh down on stock

At industry leader Nike, investors were surprised by a lowered revenue forecast. Now, British company JD Sports has followed suit with a profit warning. These disappointing news, both attributed to consumer restraint, have also weighed down on the Puma stock. The MDAX-listed stock has lost over 20 percent in the last 4 weeks.

However, things are looking good for the sports equipment manufacturer overall. The company has recently reaffirmed its EBIT forecast (590 to 670 million euros) and inventory levels are normalizing. Additionally, there are two major sporting events, the European Football Championship in Germany and the Olympic Games in Paris, in the coming months that could boost Puma.

Puma stock is not overvalued

The majority of analysts are also very positive. In December, RBC Capital set a price target of 70 euros, while Goldman Sachs sees the Puma stock at a hefty 85 euros. Warburg Research even believes that the stock could more than double and has set a target of 99 euros. JPMorgan is more cautious with a target of 58 euros.

Considering the stock’s performance in recent months and years, there are opportunities for the Puma stock in 2024. The recent decline could be a good opportunity for investors as the stock is currently not overpriced. The Puma stock should be on investors‘ radar.

Source: https://aktienscreener.com/