(News Bulletin 247) – UBS announced on Tuesday that it had downgraded its recommendation on the Puma share, which it reduced from ‘buy’ to ‘neutral’ with a price target reduced from 80 to 63 euros.

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In a research note released in the morning, the Swiss broker explains that it anticipates a ‘consolidation’ phase for the sports equipment manufacturer after the spectacular recovery in recent years.

The broker says it is particularly concerned about (1) an environment deemed increasingly complicated for the sector, (2) increased competition from its most seasoned competitors among retailers, (3) d a very uncertain recovery in China and (4) the need to reorganize its distribution activities in the Americas region after the rapid growth that the German group has recorded in the region.

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On this last point, UBS believes that the desire displayed by the new CEO to focus on a quality distribution network in the United States is the right decision in the long term, but that this choice also risks curbing the main engine of business growth.

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