Puma: Commerzbank downgrades rating

(CercleFinance.com) - Commerzbank has downgraded its rating on Puma from "hold" to "reduce," while cutting its target price for the share from 360 euros to 290 euros, after the decision of the group's main shareholder, Kering, to redistribute 70% of its Puma shares to its own shareholders.


The broker points out that by this decision, Puma's free float will increase from 14% to 55%, while Kering and the Pinault family will only have a minority stake in the capital of the German sports goods group.

"We believe a share overhang coming from Kering investors selling Puma shares will weigh on the stock," warns the broker, adding that, "the margin progress is likely to slow going forward."


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