Analysts Revise Targets for Puma Amid Transition Phase

Puma's 2026 EBIT loss forecast to narrow sharply, prompting Deutsche Bank, UBS, and mwb research to lift price targets, though shares fell amid overbought signals.

Several financial institutions have raised their price objectives for Puma SE, even as the sportswear company navigates a challenging period marked by declining revenues. The upward revisions stem from early signs of operational stabilization and a projected significant reduction in losses for the coming year, despite the ongoing sales pressure.

Financial Performance and Forward Guidance

For the 2025 fiscal year, Puma reported revenue of €7.3 billion. On a currency-adjusted basis, this represents an 8% decline. The company's gross margin also contracted, falling by 2.6 percentage points to 45.0%. The operating result (EBIT) was a particular point of weakness, recording a loss of €357 million.

Management's outlook for 2026 remains cautious but suggests an improving trajectory. The company anticipates a further currency-adjusted sales decline in the low to mid-single-digit percentage range. However, the EBIT loss is forecast to narrow substantially to a range between €-50 million and €-150 million, moving the figure much closer to breakeven.

Revised Analyst Ratings and Price Targets

The prospect of a smaller operating deficit has prompted multiple research firms to adjust their valuations upward, though most maintain a neutral stance on the stock.

• Deutsche Bank Research issued the most significant change, increasing its price target from €16.00 to €25.00 while reiterating a "Hold" recommendation. Analyst Adam Cochrane pointed to the beginning of a brand rebound, though he noted that proof of the brand being firmly back "in fashion" is still pending.
• UBS, according to dpa-AFX, raised its target from €19.60 to €23.00, affirming a "Neutral" rating. The bank cited a surprisingly robust sales performance and initial progress toward a turnaround.
• mwb research also lifted its target from €21.00 to €23.00, maintaining a "Hold" position. Its analysts view 2026 as a stabilization year, with a potential recovery materializing in 2027.

Market Reaction and Technical Context

The analyst upgrades were met with a mixed market response. Shares closed at €23.42 on Friday, representing a single-day decline of 4.56%. This price action occurred as the stock showed signs of being overbought in the short term, with its 14-day Relative Strength Index (RSI) reading at 73.2. Such a level often indicates strong recent momentum but can also precede a period of consolidation or pullback.

The overall picture remains one of a company in transition. While market experts acknowledge improving fundamentals and have adjusted their targets accordingly, Puma's own guidance confirms that 2026 is still expected to be an unprofitable year. The central question for investors is whether the company can deliver on its promised loss reduction, as this forms the foundation for the cautiously optimistic price targets now being set.