Puig tries to move away from the lows it hit this Monday, at 18,675 euros, and recorded the third most bullish session since it began its stock market debut last May. After the rebound of 3.6% on Wednesdaythe firm has suffered losses of almost 19% on the stock market, and a drop of 20% since it published its first results as a listed company in September.
Wednesday was also a day of reviews by the analysis firms that monitor the behavior of the Catalan company on the stock market, with a cut in the valuation by the Group Santander, which cuts its target price by almost 8%, from 29.30 euros to the current 27 euros. This is the second cut that the entity makes to Puig in a few weeks, since in the month of September it was already reduced from 30.50 euros to the aforementioned 29.3.
CaixaBank and Alantra Equities also reviewed Puig’s valuation today, but made no changes (see chart). The average consensus price target for Bloomberg is 27.35 euros, which represents a potential increase of 38% from current levels. CaixaBank is the firm that gives a greater range to its securities, at 33 euros.
The company of premium beauty suffers a strong correction in the stock market since it published the results for the first half of the year, where it reported that net profit had contracted up to 26% year-on-year and culminated in a drop in the stock market of almost 14% in a single day, which left below the stock market debut price.
Puig does not distance himself from the photo of the luxury segment, which is going through a difficult time due to the weakness of China, a key client for this industry. This was reflected by LVMH last week in the presentation of results, which ended up affecting the rest of the competitors.
L’Oréal, one of Puig’s comparable companies, is immersed in the same dynamic and on Wednesday its shares lost 4.6% on the stock market after the presentation of results for the third quarter of the year. Sales were worse than expected, with growth of 3.5% compared to 6%, which also represents a sharp slowdown compared to the previous quarter (reached 5.3%).
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