Puig Brand SA
Note: This is a daily stock update and the information stands true as of 16/12/24, 09:00 CET.
Company Update:
We initiate Puig brands at BUY with a target price of €28.5 leaving c 50% upside. Puig Brands offers a compelling growth profile on selected niches within the fast growing fragrance market. The group diversified in skin care (10% of sales) and Makeup (18%). The company strong growth profile is based on both organic growth and smart acquisitions that complements its offer. Puig has little exposure to Asia market (c10% o w less than 7% comes from China). This means that the company is less impacted by current lackluster environment in China with a strong focus on the high end, here again making it more resilient than its peers L’Oréal or Estée Lauder.
Expert Opinion:
The full note is attached. At first glance the company looks very interesting and valuation appears decent (PE24 at 19.8x, 18.4x for 25E and 16.6 for 26E). The IPO occurred in May but the share price recently took a hit due to a technical problem on one of its makeup product. In our analyst view, this will have a very limited impact on the profitability and is more an opportunity to enter the name.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
Company Update:
We initiate Puig brands at BUY with a target price of €28.5 leaving c 50% upside. Puig Brands offers a compelling growth profile on selected niches within the fast growing fragrance market. The group diversified in skin care (10% of sales) and Makeup (18%). The company strong growth profile is based on both organic growth and smart acquisitions that complements its offer. Puig has little exposure to Asia market (c10% o w less than 7% comes from China). This means that the company is less impacted by current lackluster environment in China with a strong focus on the high end, here again making it more resilient than its peers L’Oréal or Estée Lauder.
Expert Opinion:
The full note is attached. At first glance the company looks very interesting and valuation appears decent (PE24 at 19.8x, 18.4x for 25E and 16.6 for 26E). The IPO occurred in May but the share price recently took a hit due to a technical problem on one of its makeup product. In our analyst view, this will have a very limited impact on the profitability and is more an opportunity to enter the name.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
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Alphavalue Morning Market Tip
Solid start of 2025 with signs of recovery in key markets.