(News Bulletin 247) – Credit Suisse confirms its Underperforming opinion on the stock but raises its price target to E112 (vs. E106) on the basis of 25x EPS 2025E.
“We have no doubts about the substantial recovery in brand awareness, sales momentum and margins. The question we ask ourselves is how fast this recovery will take place in a fragmented and more competitive sector, and what is already discounted in the current share price?
Credit Suisse is making fairly minimal changes to guidance with own EBIT margins of 0.5%, 3.9% and 5.4% for the next 3 years (vs. 0.2%, 3.5%, 5.1% ) and its EPS forecasts are 36% and 38% below consensus for 2024 and 2025.
‘Getting back to a 7.5% margin in 2 years seems very demanding, given the lags inherent in the sporting goods industry, and it would be significantly faster than what Bjorn Gulden (CEO) managed to do at Puma’ indicates Credit Suisse.
‘As sales are likely to slow over the next two quarters, the main catalyst we expect is the promise of a CMD and a five-year plan, even if the timetable is not very clear’ adds the office of ‘ analyzes.
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