Puma stock faces gradual recovery into 2027, says mwb Research

Puma stock is facing a gradual recovery into 2027, according to a November 2 note from mwb Research published by AskTraders. The brokerage reiterated its Hold rating and a 24 euro price target after Puma's third-quarter earnings release.

Analyst Alexander Zienkowicz said management still expects sales to improve sequentially in the fourth quarter. Puma also continues to target a return to growth and outperformance of the broader industry, although cautious consumers and more selective wholesale ordering remain constraints.

Recovery depends on broader demand

mwb Research models 2027 sales growth of 5 percent, toward the upper end of Puma's previously indicated low- to mid-single-digit industry growth range. The analyst said momentum in Running, Training and selected Sportstyle franchises must translate into broader consumer demand and meaningful scale before the recovery case becomes more convincing.

Gross-margin fundamentals are improving, supported by Puma's exit from low-margin distribution, tighter discount management and a higher direct-to-consumer mix. Operating expense leverage, however, is expected to improve only gradually because part of the headcount-related savings is being reinvested in marketing, direct-to-consumer operations, information technology and other capabilities.

The note also points to a more concrete role for major shareholder Anta Sports after its investment closed. Discussions have started on Puma's future operating model in China, but financial targets, synergy estimates and a wider strategic roadmap have not yet been disclosed.

Puma stock traded at 27.47 euros on Lang & Schwarz at 11:38 CET on Thursday, November 5, 1.74 percent above the Xetra close of Wednesday, November 4; the real-time quote of Puma stock is available here.

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