Puma Shares Surge on Takeover Buzz After Analyst Upgrade
Puma shares have seen a significant boost today, with the sportswear giant's stock surging by nearly six percent. This comes after analyst Warwick Okines upgraded the company's rating and raised the price target, citing a potential 'special situation' involving major shareholder Artemis.
Okines believes that Artemis, which owns around 29 percent of Puma's shares, could explore a partial sale. This could open the door to a takeover premium, potentially valuing each share at around 30 euros. Okines has upgraded Puma's rating from 'Underperform' to 'Neutral' and raised the price target by 40 percent to 21 euros. This optimism is based on a leveraged buyout and licensing model, which suggests a 40 percent probability of a takeover at 30 euros per share, with a DCF value of 15 euros contributing to the new price target.
Puma's shares have responded positively to Okines' analysis, currently up around three percent. While the analyst's upgrade and price target raise suggest potential, the final outcome will depend on Artemis' strategic decisions regarding its stake in Puma.
