Jefferies has reiterated its confidence in Birkenstock Holding plc (NYSE: NYSE:) and maintains a Buy rating with a firm price target of $75.00.
The company’s analysis suggests stable performance for the footwear maker and expects another quarter of business as usual. This forecast is based on indications of market share gains in the open-to-buy segment and continued strength in the direct-to-consumer (DTC) sales channel.
Despite ongoing capacity-related challenges that likely impacted gross margins and adjusted EBITDA percentages in the third quarter, Birkenstock management was transparent about these short-term impacts.
Jefferies expects these issues to improve by 2025. The company believes that Birkenstock offers attractive long-term growth prospects for investors.
The analysis points to Birkenstock’s expansion potential in the future. Jefferies has pointed out that the company has significant growth opportunities, which supports their decision to reiterate the Buy rating and the $75 price target.
In other recent news, Birkenstock has issued 14 million shares in a secondary offering while maintaining existing shareholder equity. Birkenstock continues to forecast revenue growth of over 20% and an EBITDA range of EUR 535-545 million for the 2024 financial year.
Analysts from various companies have adjusted their ratings and price targets for Birkenstock. Citi reiterated its “buy” rating on the company, while UBS raised its rating from “neutral” to “buy,” highlighting the company’s successful expansion strategy in direct sales and growth in the Asia-Pacific region.
Deutsche Bank also resumed its coverage and gave Birkenstock a “buy” rating due to the company’s strong margins and potential for sustainable sales growth.
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