Puma shares: "Caution ahead!"

In the world of fashion and sportswear, Puma is currently navigating a tumultuous period as it strives to maintain its stock price above the 20-euro mark. The initial euphoria that surrounded Puma's stock has since faded, leaving the company in a challenging position.

The recent roadshow reinforced the management's belief in the latent value of the Puma brand, according to analyst Nick Anderson of Berenberg Bank. However, the turnaround for Puma is expected to be a long and arduous process, as acknowledged by Anderson himself.

The turnaround comes with risks, Anderson admits, but he remains optimistic about the new management's ability to deliver the necessary changes. His prediction for Puma's stock price is a doubling of its current value, a bold statement that sets him apart from some of his peers.

On the other hand, Wendy Liu of U.S. bank JP Morgan has a more cautious outlook. She recently downgraded Puma's target price to 16 euros and downgraded the stock from "Neutral" to "Underweight."

The potential buyers for the Pinault family's 29% stake in Puma remain unclear, adding to the uncertainty surrounding the company's future. Liu sees potential pitfalls in the takeover speculation, as the Pinault family has not publicly commented on the sale rumours.

Puma's stock has been riding a wave due to speculation about the sale of the Pinault family's stake, but the reality of tough competition, exacerbated by Nike's comeback, looms large. Despite these challenges, Anderson maintains a "Buy" rating for Puma, reflecting his confidence in the brand's potential.

Interestingly, Berenberg Bank has a target price for Puma of 40 euros, a significant increase from its current price. However, it's important to note that the analyst who wants to double the Puma stock price is not explicitly named in the search results.

As Puma embarks on its turnaround journey, it faces significant implementation risks, as highlighted by Liu. The road ahead is uncertain, but with the right strategies and leadership, Puma may yet manage to reclaim its position in the competitive sportswear market.