Puma rises after HSBC ups to 'buy' on growth potential beyond short-term woes

PUMA SE

Tue 11:13

** Shares in Puma PUMG.DE rise 3.2% after HSBC raised the German sportswear maker to "buy" from "hold", citing a significant growth potential
** HSBC flags 2026 remains a transition year for Puma given the ongoing inventory clean-up, reduction of undesirable wholesale business and cost control measures
** However, it points out Puma's ongoing brand transformation and meaningful growth opportunities in China, which the market is not fully factoring in 
** "Beyond the short-term, we believe the recent change of ownership with Anta Sports 2020.HK taking a 29.06% stake in the brand, will serve as a catalyst for unlocking significant growth opportunities, notably in the key China market, which should be visible as early as late 2027," it says
** Puma can benefit Anta's expertise in the local market and leverage Anta's existing distribution network, according to HSBC
** Anta has a strong track record of turning around global brands, including Fila, Descente, Kolon Sport and Amer sports AS.N, which were acquired and re-launched following a strategic repositioning with a particular focus on the China market, where all of them are now a success, it adds
** The stock, which has gained 29.3% YTD including today's session, is among the best performers on the pan-European STOXX 600 .STOXX index

 (Reporting by Ozan Ergenay)
 ((ozan.ergenay@thomsonreuters.com))