Stock has not yet traded above its IPO issue price of $46
Birkenstock Holding Ltd.’s stock rose Monday as analysts initiated coverage of the iconic German sandal maker with mostly bullish ratings now that the lockup period after its initial public offering has expired.
“Given its historic brand and loyal customer base, we believe the company is well-positioned to drive strong top-line growth, maintain its attractive margin profile, and expand its addressable market,” said Jefferies analysts led by Randal Konik, who assigned the stock a buy rating and $50 price target.
For more, read: Birkenstock is going public: 5 things to know about the iconic German sandal maker’s IPO designs Management’s scarcity-creation approach is a positive, the analysts said as they initiated coverage with an overweight rating. Current demand is understood to be at least 20% higher than management’s revenue plan, supporting brand health and long-term sustainable growth, they wrote in a note to clients. JPMorgan set a price target of $48.
They also welcomed the opportunity in the company’s push into the Asia-Pacific, Middle East and Africa regions, markets neglected in the past as Birkenstock focused on the U.S. and Europe. “While we view it as a strong brand with unique attributes, we think outsized growth on top of the robust recent trends will be difficult,” they wrote in a note. “This leaves multiple expansion as the key driverThe stock is already trading at a discount to high-growth athletic brands but at a premium over other footwear stocks, they said, adding, “We see this as appropriate.
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