Puig scores lowest since debut and loses 19 euros after six days off | Financial markets

Puig keeps his head down on the stock market. Its shares lost 19 euros per share during the day and set a new low of 18,945 euros since its debut in May last year. Shares in the cosmetics company have already fallen 22.7% since its stock market debut on May 3, when it set a price of 24.5 euros per share. Shares in the company, which owns brands including Nina Ricci, Paco Rabanne and Carolina Herrera, fell 2% on the session and have now accumulated six straight days of declines, its worst streak as a listed company. During this period, 5.8% remained.

The trigger for Tuesday’s fall was US cosmetics firm Coty, one of the listed companies comparable to the Spanish one, which published preliminary results for the quarter. The firm, listed on the US and Paris stock exchanges, cut quarterly sales growth to 4-5% from a previous estimate of 6%. The development was enough to weaken the company on the stock market, losing 0.6%, and drag down other companies in the cosmetics business, such as L’Oréal, which fell 3.3%, and Esteé Lauder, indicating a decline in shares . The market is also paying close attention to the reports that LVMH publishes today. The French luxury giant will release its quarterly results after markets close, which comes at a time of weakness in the Chinese economy, a market on which much of its revenue depends.

In Coty’s case, Jefferies analysts point to a “slowdown in U.S. consumer growth” that has already been priced in by investors, and Morgan Stanley doesn’t believe the punishment for the actions could go much further given that. 25% is already left within the year. A fix similar to the one Puig has recorded since his debut. JP Morgan strategists, for their part, decided to lower Coty’s target price from $11 to $10, while maintaining a neutral recommendation.

Despite the sharp fall accumulated by Puig in the stock market, the company has the support of analyst firms. According to Bloomberg, 73% of companies that follow value maintain a buy recommendation, and none have a sell recommendation, although there are still few analysts who follow value beyond the research departments of the banks that coordinated the placement. Morgan, Santander, Bank of America, CaixaBank, BNP Paribas, BBVA and Sabadell-. Analysts at Jefferies were the latest to rate the stock with a buy rating and a target price of €25.65 per share.

These experts emphasize that the company is not only positioned in the fastest growing market categories such as perfumes and dermatology, but that the Catalan company has also managed to present the best organic data in the field of high-quality cosmetics. Consequently, Jefferies hopes that “the differential (compared to competitors) will continue as the beauty market slows.” They estimate that 68% of their sales are from fragrance, although makeup already makes up 18% of their revenue and skincare 10%.

In its first results as a listed company, reported in September, Puig recorded a net profit of €153.8 million in the first half, down 26% on the same period in 2023, despite an improvement in billing performance close to to 10.%. Their accounts were received with a heavy penalty (-13.65%) on the stock market on the same day, a reduction that, according to the posted banks, was due to misinterpretation of the accounts. The results also marked the spending of almost 120 million euros on the IPO. The flotation is currently the biggest debut of the year on the European stock market and the largest on the Spanish market since Aena’s IPO.