On Monday, BTIG reaffirmed its Buy rating on shares of Birkenstock Holding plc (NYSE:BIRK), with a steady price target of $60.00. The $10.3 billion market cap company currently trades at $55.06, with InvestingPro analysis suggesting the stock is slightly overvalued at current levels.
The firm anticipates Birkenstock to release its fiscal fourth quarter earnings for the September quarter on Wednesday, December 18, before the market opens.
Expectations are set for the results to align closely with consensus forecasts, though there is a possibility that margin guidance could be slightly lower due to uncertainties regarding the mix of sales channels. The company has maintained impressive gross profit margins of 60.2% over the last twelve months, according to InvestingPro data, which offers 13 additional key insights about BIRK's financial health.
The analysis by BTIG suggests that Birkenstock's wholesale performance will continue to surpass its retail segment, a trend that has become more anticipated by the market compared to the previous fiscal third quarter. This shift in channel dynamics is expected to normalize over the coming quarters.
Despite some variability within the quarter, market checks indicate a sustained strong demand for the brand, with robust full-price sales through wholesale channels and expansion into new retail doors as Birkenstock extends its reach into adjacent categories.
BTIG's outlook for 2025 remains positive for Birkenstock, noting the company's advantageous position even in a scenario of increased tariffs. Supporting this view, the company has demonstrated strong revenue growth of 19.8% over the last twelve months, with net income expected to grow this year. The firm's perspective is that Birkenstock represents an undervalued growth narrative with the potential to achieve double-digit percentage growth in top-line revenue while maintaining or enhancing profit margins.
The investment firm stands by its projection that Birkenstock's stock value could benefit from a re-rating closer to its growth-focused industry peers as investor familiarity and confidence in the company's strategic direction increases. With these factors in mind, BTIG upholds its Buy recommendation and a price target of $60.00.
In other recent news, Birkenstock Holding plc has been the subject of several analyst reports. Baird maintained its Outperform rating on Birkenstock shares, citing a favorable risk/reward profile and a $65.00 price target.
The firm expects Birkenstock's fourth fiscal quarter report to align with consensus estimates, with sustained brand heat and robust demand indicators supporting a forecast for high-teens revenue growth leading into fiscal year 2025.
BTIG reaffirmed its Buy rating on Birkenstock, with a consistent price target of $60.00. The firm views Birkenstock as a distinctive and undervalued growth story, with the potential to achieve double-digit revenue growth while maintaining stable or improving profit margins.
In recent developments, Birkenstock reported record-breaking third-quarter revenue for fiscal year 2024, driven by a 19% increase in constant currency terms. The company's adjusted EBITDA reached an all-time high of EUR186 million, with a margin of 33%.
Despite a slight decline in gross profit margin due to capacity expansion and a shift in channel mix, Birkenstock's management expressed confidence in meeting the upper end of the fiscal year 2024 guidance for revenue growth and adjusted EBITDA margin.
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