Analyst Molly Wylenzek of Jefferies maintained a Buy rating on Puig Brands, S.A. (PUIG – Research Report), retaining the price target of €24.60.
Molly Wylenzek’s rating is based on a combination of factors that highlight Puig Brands, S.A.’s strong financial performance and promising future outlook. The company reported a notable increase in FY24 like-for-like sales, growing by 10.9%, with the Fragrance & Fashion division showing particularly robust growth of 13.6%. This performance is impressive, especially when considering the challenging market conditions and the general slowdown in the fragrance market during the fourth quarter.
Furthermore, Puig Brands, S.A. achieved an adjusted EBITDA margin of 20.2%, slightly surpassing consensus expectations, and a significant 15.5% increase in net profit. Looking ahead, the company’s guidance for FY25 suggests continued growth, with expectations of 6-8% like-for-like sales growth and EBITDA margin expansion consistent with FY24 results. The consensus already aligns with the higher end of these projections, indicating confidence in the company’s ability to maintain its positive trajectory.