Puma's Stock Surges Ahead of Critical Q3 Results
Puma's stock trading volume has surged by over 2,750 percent above average, suggesting significant institutional investor activity. This comes amidst mixed signals from analysts and a looming third-quarter results announcement on October 30, which is expected to be a critical test for the company's new management.
Analysts predict a currency-adjusted revenue drop of around 7 percent for Puma in the third quarter and a steeper decline of about 30 percent in the fourth quarter. Despite recent speculation about a potential merger with Adidas, Puma's stock price has plummeted by more than 50 percent this year, reflecting operational challenges. The second-quarter results showed a revenue decline and EBIT loss, indicating significant structural problems and a challenging market environment.
Bank of America recently upgraded Puma's rating from 'Underperform' to 'Neutral', increasing the price target from 14 to 23 euros. However, this upgrade was based on technical adjustments rather than improved business prospects. HSBC maintains a 'Hold' rating for Puma, citing a 'very challenging path to recovery'. BlackRock has become a major shareholder, holding 3.21 percent of the voting rights since October 9.
The upcoming third-quarter election results will be crucial in validating investors' trust in Puma. Despite the recent stock price increase fueled by election results speculation, the company faces conflicting analyst signals and poor quarterly forecasts. Investors will be closely watching the election results to assess the new management's ability to restore confidence and turn around the company's fortunes.
