The analysts of Renta 4 reiterate their recommendation of ‘overweight‘ for Puig Brands, with a target price of 22,10 euros per share after the latest changes that the company has made in its management leadership to align with the best practices of listed companies. The valuation represents a upside potential of more than 45% compared to the current price.
As had been rumored since his appointment as deputy general director, this week José Manuel Albesa has been designated as CEO of Puig in replacement of Marc Puig. Puig will continue as executive chairman, focused on mergers and acquisitions strategy and as guardian of the Puig family culture and values.
Albesa joined Puig in 1998 and has held senior management positions in the areas of brand development, marketing and operations, playing a central role in the strategic development and international expansion of Puig’s fragrance and fashion portfolio. He was currently Deputy CEO and President of Beauty and Fashion.
In this way, the company confirms the separation of the functions of president and CEOin accordance with the best practices of leading publicly traded companies.
It was not the only change, but the appointment of Miquel Ángel Serra as financial directorreplacing Joan Albiolwho will continue to be secretary of the Board of Directors. Serra previously held the position of Vice President of Corporate Control and Investor Relations.
He Renta 4 analyst Pablo Fernández de Mosteyrín considers that this is “positive news that reinforces the independence and professionalization of the management team and the governance of the company.» Likewise, he anticipates «a smooth and hopefully continuous transition, maintaining the creativity and entrepreneurial character of a family business with more than 100 years of existence.»
Fernández de Mosteyrín remembers that the next April 14 Puig will celebrate his Capital Markets Daywhich will provide an update on its long-term strategy and priorities. Pending the announcements of this meeting, Renta 4 reiterates its ‘overweight’ recommendation with a target price of 22.10 euros per share, which is more than 45% above the current price.
Puig’s shares have managed to rebound 15.7% since they hit historic lows of 13.11 euros in October last year, but they are still far from the levels of their IPO. The company debuted on the stock market in May 2024 at a price of 24.50 euros and just a few months later, on July 22, it entered the IBEX 35. Its highest point was on June 13 of that year, when it was listed at 27.78 euros. The price today is 38% below its debut price on the Stock Market and 45.4% compared to its historical highs.