NewsPuma "neutral," estimates revised
09.11.06 - J.P. Morgan Securities
LONDON, November 9 (newratings.com) - Analysts at JP Morgan maintain their "neutral" rating on Puma AG (PUM), while revising their estimates for the company. The target price is set to ?288.
In a research note published this morning, the analysts mention that the company intends to focus on achieving improved profitability in the US during FY07, driven by potentially higher sales growth across higher margin distribution channels. Puma has indicated that the 35% revenue growth target for FY06 would be difficult to achieve and margins would contract in 4Q06 due to increased costs, the analysts say. The EPS estimate for FY06 has been reduced by 2.6%. The EPS estimate for FY07 has been raised by 2% to reflect the expectation of a lower tax rate.