Report by Renta 4
Puig is reported to have paid more than €350 million to increase its stake in CT from 77.5% to 85%, according to reports in various media outlets.
We note that the company has set aside nearly €1,000 million to fund the acquisition schedule for its portfolio companies over the coming years, which already factored in this increase in CT and is due to be completed by 2031.
Assessment: Positive news, but with no impact on the share price as it was already factored into the schedule renegotiated in 2024.
Inorganic growth has historically been a key part of the company’s growth strategy, and we believe it will continue to be so in the future, with a sound balance sheet to support such transactions and scope for growth in this way, particularly in the skincare business.
We reiterate our ‘Overweight’ recommendation and a target price of €20.80 per share.
