Puma Gets Positive Nod From Deutsche Bank Amid Transition Year

On March 19, 2025, Deutsche Bank analysts visited the management team of Puma in Herzogenaurach, giving an overall positive outlook for the company despite acknowledging challenges ahead in 2025. This year is slated to be a transitional period for Puma as they expect an adjusted EBIT of between 520 million and 600 million euros. In comparison, in 2024, Puma achieved an EBIT of 622 million euros.

The start to the new year, however, has not been as favorable as hoped. Concerns from investors about wholesale partners retracting orders appear not to have materialized, which bodes well for the company. Following the roadshow, Deutsche Bank maintained its 'Buy' rating for Puma shares, with a price target set at 34 euros.

Analyst Adam Cochrane, who led the assessment, expressed optimism following his engagement with the Puma team: "Deutsche Bank Research maintains a 'Buy' rating for Puma with a price target of 34 EUR," he stated, underscoring the confidence in the brand's potential despite current market fluctuations.

Puma shares have shown some positive movement, increasing by 2% to 24.48 euros on the reporting date. Yet, over the past six months, the share value has dropped by approximately 35%, highlighting the volatility and significance of forward-looking measures. Cochrane's remarks suggest that while the company faces substantial headwinds, there may be upside potential in their forecast, particularly due to anticipated reductions in freight costs and favorable currency exchange effects in the latter half of the year.

As Puma navigates through 2025, the insights and evaluations from analysts like Cochrane could play a critical role for investors. Notably, the cautious optimism projected during the roadshow can inspire confidence among stakeholders. The detailed assessment lays the groundwork for future evaluations while providing a candid look at the hurdles Puma must surmount.

In recent trading, the stock was noted at 24.42 euros, reflecting a modest increase of 1.08%, indicative of market responses to the latest analyst ratings and corporate forecasts. The sustained interest in Puma despite its stock's rocky trajectory signals that investors are keenly watching for signs of recovery and growth potential.

For the present, analysts believe that with strategic management and market adjustments, Puma can emerge successfully from this transitional year, potentially restoring investor confidence and charting a robust course ahead. The combined effects of strategic cost management and a constructive outlook from leading financial institutions could reshape Puma's market standing over the next twelve months.