Puig enfila máximos del año y aún tiene potencial

Puig, the Spanish perfume and beauty group, has set its sights on year-end highs but remains more than 20% lower than its 2024 IPO price. As of yesterday, the company's shares rose 1.14% to 19.48 euros, just short of breaking the previous year's high of 19.59 euros. The company's market capitalization now exceeds 11 billion euros, placing it below Indra in Spain's stock market rankings.

Puig's strong performance has attracted investor support since the first Investor Day on October 28th and the September acquisition of a 50% stake in Isdin. The company reported record sales of 1.391 million euros in October, driven by a comparable 5.6% growth rate that surpassed market expectations. Puig has set ambitious targets in its 2032 strategic plan, aiming for 8 billion euros in sales and a 22.5% adjusted EBITDA margin in that year.

BNP Paribas and Goldman Sachs have become the most optimistic investors in the Spanish fragrance company, raising their price targets to 24.40 euros and 23.50 euros, respectively, with BNP Paribas citing a 25.25% upside potential. Other analysts, such as Citi, have increased their price targets to 22 euros, improving their profit forecasts up to 2028 as Puig integrates Isdin and benefits from higher margins due to factors like increased participation in skincare and makeup.

Analyst Arancha Piñero from Banco Sabadell praises Puig's mid-term goals, particularly its focus on EBITDA margins, which will offset the initial dilution from Isdin integration and capitalize on synergies, structural integration, and efficiency improvements. Piñero views Puig as an attractive option for investment in a historically resilient sector with diversified growth prospects and appealing multiple factors.