Puma: Commerzbank raises target price; maintains 'reduce'

(CercleFinance.com) - Commerzbank has raised its target price on Puma from 290 euros to 300 euros, although maintains its “reduce” rating on the stock after the sporting goods maker reported Q4 results that are in line with expectations.


Management expects the solid trend to continue and guides for 10% sales growth and EBIT of 305-325 million euros for 2018, the broker says, while noting that the consensus expects the upper end of this range.

“While Puma is on track to achieve further growth and higher profitability we see consensus for sales and EBIT in 2018 as ambitious,” Commerzbank writes in a report sent to clients.

“Moreover, we expect the share overhang (after Kering shareholders receiving Puma shares) to weigh on the Puma share in the next months,” it adds.


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