The first results as a listed company have affected not only the minds of Puig investors, but also those of analysts. As many as four of the experts covering the stock have downgraded the company’s stock valuation. Catalan following this data known last Friday. The average price target now stands at 27.93 euros per share, compared to 29.14 euros at which it was valued at the end of last week.
Alantra, Oddo BHF, Goldman Sachs and Grupo Santander are the investment banks that have reduced their valuations. Everyone sees Puig shares below 30 eurosAlantra’s target price is the lowest among those monitoring it, at €25.05 (previously €26.45), just €0.55 above the price at which the company started trading. Oddo, meanwhile, offers a valuation of €26.10 (previously €28.50) and Goldman Sachs and Grupo Santander lower their price targets by €30 to €28 and €29.30 respectively.
With all these revisions, the average price target of analysts collected Bloomberg falls below 28 euros per share (27.93 euros), compared to the almost 30.50 euros at which Puig shares were seen after their stock market debut, which means an 8% drop in average valuation. Despite the cut of the valorization, Puig’s upside potential in the stock market for the coming months is close to 34% and the majority recommendation remains to take positions on the company.
The cuts are driven by the company’s half-year results presented last Friday. These were its first accounts as a listed company and the contraction in profits year-on-year (partly due to expenses generated by the IPO) was marked. a pitcher of cold water at the price of Puig. During the first six months of the year, The group’s net profits were 26% lower going from the 209 million euros recorded in the same period of 2023 to the 154 million it achieved during this first half of the year.
The reading of the accounts by investors on Friday caused its share price to collapse by 13.7%. This Monday its shares are still suffering. red numbers and they suffered a further drop of around 2% in the middle of the European session (it positioned itself as the most bearish firm on the Ibex 35 this Monday) and the price of its shares fell for the first time since its IPO at 21 euros.
With these latest corrections, since Puig rang the bell on May 3, The company’s market value was reduced by more than 2 billion eurosgoing from a capitalization of 13.9 billion at the start of its stock market career to the approximately 11.8 billion that the company is currently worth on the stock market.
