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Investing.com - Piper Sandler has maintained its Overweight rating and $65.00 price target on Birkenstock Holding plc (NYSE:BIRK) ahead of the company’s fiscal third-quarter 2025 results. Currently trading at $48.20, InvestingPro analysis suggests the stock is undervalued, with analysts’ targets ranging from $56.35 to $81.45.
The research firm projects currency-neutral sales growth of 16% for the quarter, translating to 12% growth on a reported basis due to a 3-4 percentage point foreign exchange headwind. Management previously indicated that the third quarter would be the slowest growth period of the year, falling at the low end of the company’s 15-17% annual currency-neutral growth forecast. This follows the company’s impressive last twelve months revenue growth of 20%, according to InvestingPro data, which also reveals a robust gross profit margin of 59%.
Piper Sandler expects direct-to-consumer (DTC) sales to increase 17% on a currency-neutral basis (13% reported), while business-to-business (B2B) sales are projected to grow 16% in constant currency (12% reported). Management had previously noted that DTC growth would accelerate in the second half of fiscal 2025, driven by expansion in Asia, new store openings, and easier year-over-year comparisons.
The footwear company implemented selective price increases in the United States beginning July 1, 2025, in the low-single-digit percentage range, with a global price increase still planned for December.
Based on the current trajectory, Piper Sandler anticipates Birkenstock may slightly raise its full-year revenue guidance if it exceeds quarterly expectations by 1-2 percentage points, while likely maintaining its EBITDA margin forecast of 31.3-31.8% due to foreign exchange pressures.
In other recent news, Birkenstock Holding plc has been the subject of several notable developments. Stifel has reaffirmed its Buy rating on the company, maintaining a $70.00 price target despite currency headwinds affecting revenue and profitability. UBS also adjusted its outlook, raising the price target to $77.00, citing solid topline trends in the third quarter, although these trends are not expected to lead to an increase in the fiscal year 2025 revenue growth outlook. Fitch Ratings upgraded Birkenstock’s Long-Term Issuer Default Rating to ’BB+’ from ’BB’, highlighting the company’s strong profitability and financial policy. Goldman Sachs upgraded the stock rating from Neutral to Buy, pointing to attractive growth opportunities and strong product proposition. Piper Sandler reiterated an Overweight rating with a $65.00 price target, despite challenges such as tariff pressures and foreign exchange issues impacting the stock’s performance. These recent developments reflect varied perspectives on Birkenstock’s financial health and future prospects.
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