BofA Expects Puma's Sales Decline to Ease in FY26, Tweaks Price Objective

06:33 AM EST, 01/07/2026 (MT Newswires) -- Puma's (PUM.F) sales decline should soften to 4% in 2026 on a constant-currency basis from 10% in 2025, BofA Global Research said, noting limited visibility on the German sportswear maker's relaunch strategy. "Our estimates are already low and below consensus for the coming years, reflecting only a gradual exit from the current loss-making situation," analysts said Tuesday. "Our medium-term forecasts of 5% revenue growth starting in 2028 and a gradual return to the group's low long-term average EBIT margin of c.7% by 2030 appear severe enough, pending better visibility on the brand's relaunch strategy." Given the lower risk on cautious estimates, the stock's price objective was tweaked to 24 euros from 22 euros, with a neutral rating. The research firm also cited below-sector gross margin, higher operating expenses, low free cash flow generation, high dividend, and rising exposure to emerging markets as drawbacks of Puma's business model.