Puma "neutral," target price reduced

08.05.07 - J.P. Morgan Securities

LONDON, May 8 (newratings.com) - Analysts at JP Morgan maintain their "neutral" rating on Puma AG (PUM), while reducing their estimates for the company. The target price has been reduced from ?333 to ?330.

In a research note published this morning, the analysts mention that the company has reported its 1Q orders short of expectations. Puma has not reaffirmed its Phase IV 2010 sales guidance of ?4 billion and stated that it is now a long-term target. The company?s order book decline is likely to be only marginally offset going forward by an increase in gross margins and own retail, the analysts say. The EPS estimate for FY07 has been reduced by 9.8%.