Puma’s margins to grow in 2017 according to Deutsche Bank forecast

According to Deutsche Bank, German sport label Puma is expected to get back on track after years of restructuring. A study published at the end of January by Adrian Rott has forecasted in fact a return to strong growth and significant margins for Puma in 2017.

According to Deutsche Bank, the expansion of Puma's women's range is a positive factor - Puma

Given the growth prospects and the fact that Puma shares are still among the cheapest in the industry, Adrian Rott has reclassified them from the "hold" to the "buy" category, forecasting a share-price rise from €205 to €300.

According to Rott, Puma's boss Björn Gulden, in charge since 2013, is on a rising path. It took two years for the products whose development he oversaw to see the light of day, and now Puma is once again regarded as an accomplished brand, alongside Nike, Adidas and Under Armour, and it is becoming popular again in the USA, a key market for sports.

According to Rott, the collaborations with singer Rihanna and celebrity Kylie Jenner hold a lot of promise, especially since the limited edition models associated with them will be revamped in 2017, allowing Puma to earn market share by targeting the women's market. Another point in Puma's favour is the retro trend, heralding a major return to 1990s-style, logo-heavy looks.

Deutsche Bank reckons that Puma's growth potential will not be affected by any change in share ownership, though the analysts are asking questions about Kering's intentions. Some are wondering if the French luxury and sport-lifestyle giant will take over Puma completely, or instead sell part of its stake in the brand.

According to experts, it is possible that Kering, which owns an 86% interest in Puma, will hold on to its stake even if the brand's profitability is clearly not the same as that of a luxury label. Puma will publish its annual results on 9th February.

Translated by Nicola Mira

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