Puma shares plunge in unexpected tumult?

Stock prices for Puma decline in response to JP Morgan's unfavorable rating and industry challenges, with the target price decreased to 16 euros.

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2025 September 15 . 8:15 PM

1 min read

Puma shares plunge in unexpected tumult?

In the world of fashion and sportswear, the recent results from Lululemon have left a significant impact, with ripples felt across the entire sector. One of the brands feeling the brunt of this wave is Puma, as its stock has been on a downward spiral.

This week, analysts at JP Morgan downgraded their stance on Puma stock from neutral to "underweight." The specific analyst involved in this decision remains unnamed in available sources, but the downgrade and price target cut from 21 euros to 16 euros were reported. This move by JP Morgan has raised concerns among investors, with many expecting new lows for Puma stock.

The past few months have been challenging for Puma. In late August, the stock attempted a recovery, rising from a multi-year low of 17 euros to over 20 euros. However, this week, Puma's stock dropped below the 20 euro mark again, falling by 1.7 percent on Friday.

The reason for Puma's struggles is multifaceted. Consumer sentiment remains weak for the brand, and trade issues are keeping investors away. Sentiment in the sector has worsened this week, with the lackluster results from Lululemon adding to the concerns.

Some observers see opportunities for long-term recovery for Puma stock, but the road to recovery may be a long and arduous one. Without fundamental improvements, there's little hope of escaping the downward spiral. Even a planned product offensive by Puma is met with scepticism, with few believing in its success.

The long-term hope for Puma's recovery is not entirely unfounded, but things could get much worse before a genuine and sustainable recovery occurs. For now, investors are advised to tread cautiously with Puma stock.