Jul. 20, 2025 11:18 AM ETPuig Brands, S.A. (PUGBY) Stock, PUIGF StockLVMUY, PUGBY, PUIGFWolf ReportInvesting GroupSummaryPuig Brands offers strong fundamentals, iconic luxury brands, and attractive growth in fragrance, skincare, and makeup, yet trades at a significant discount.Recent earnings outperformance and a reconfirmed 2025 forecast highlight robust demand and margin stability across all segments, despite tariff headwinds.The current 10-12x P/E valuation is unjustified for a company of Puig’s caliber; I assign a fair value of 15x P/E, targeting €20/share.With a well-covered dividend, solid management, and limited thesis-changing risks, I rate Puig Brands a BUY with 15%+ annualized upside potential.Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More »Kathrin Ziegler/DigitalVision via Getty ImagesEver since seeing some volatility and worse trends than I expected in consumer cyclical/discretionary segments involving clothes and fashion, I have been a little more careful about investing in these segments. However, the industry is not unattractive, and some of the more established players, especiallyThe company discussed in this article is only one potential investment in the sector. Members of iREIT on Alpha get access to investment ideas with upsides that I view as significantly higher/better than this one. Consider subscribing and learning more here.This article was written byWolf Report34.29K FollowersWolf Report is a senior analyst and private portfolio manager with over 10 years of generating value ideas in European and North American markets.He is a contributing author and analyst for the investing group iREIT®+HOYA Capital and Wide Moat Research LLC where in addition to the U.S. market, he covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas.Learn moreAnalyst’s Disclosure:I/we have a beneficial long position in the shares of PUGBY, LVMUY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment. Short-term trading, options trading/investment and futures trading are potentially extremely risky investment styles. They generally are not appropriate for someone with limited capital, limited investment experience, or a lack of understanding for the necessary risk tolerance involved. I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles. I own the Canadian tickers of all Canadian stocks I write about. Please note that investing in European/Non-US stocks comes with withholding tax risks specific to the company's domicile as well as your personal situation. Investors should always consult a tax professional as to the overall impact of dividend withholding taxes and ways to mitigate these.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsRecommended For You