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Birkenstock experiences mixed analyst coverage post-IPO

EditorPollock Mondal
Published 11/06/2023, 10:44 PM
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The German footwear company, Birkenstock (NYSE:BIRK), which recently debuted on the New York Stock Exchange (NYSE), has been the subject of diverse analyst coverage. After underperforming its initial public offering (IPO) price of $46 per share by closing at $41 on its first trading day, the company has seen a marginal recovery, closing at $41.16 last Friday.

Several financial institutions have initiated their coverage on Birkenstock. Jefferies analysts project a rise to $50 next year, attributing this optimism to the brand's history and loyal customer base. Goldman Sachs also anticipates market share gains due to easing supply constraints and Birkenstock's pricing power. J.P. Morgan views the management's revenue growth forecast as prudent.

In contrast, Morgan Stanley assigned a price target of $41 with an "equal-weight" rating, arguing that most catalysts are factored into the current price. HSBC analysts foresee a gross margin decline due to recent production investments. Other brokerages have set price targets ranging from $42 to $48.5.

Furthermore, Birkenstock has received coverage initiation from financial institutions including HSBC, JPMorgan Chase & Co. (NYSE:JPM), Deutsche Bank Aktiengesellschaft, BNP Paribas (OTC:BNPQY), and William Blair. These institutions have given ratings spanning from “hold” to “overweight” to “outperform,” setting price objectives ranging from $42.00 to $48.00. The stock has accumulated four hold ratings and ten buy recommendations, culminating in a Moderate Buy consensus as per MarketBeat.com data, with an average target of $46.50.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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