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Investing.com - Piper Sandler has reiterated an Overweight rating and $65.00 price target on Birkenstock Holding plc (NYSE:BIRK), despite the stock’s recent underperformance following its May earnings report. According to InvestingPro data, the stock is currently trading at $46.66, with analysts setting targets ranging from $56.21 to $81.61.
The research firm noted that Birkenstock shares have lagged due to tariff pressures and foreign exchange challenges, resulting in what it considers an oversold valuation at 13x EV/EBITDA based on 2026 projections. InvestingPro analysis confirms this oversold status, with current EV/EBITDA at 14.7x and impressive gross profit margins of 59%.
Piper Sandler highlighted Birkenstock’s significant own store expansion opportunity, particularly in the Americas market where the company currently operates just 10 stores but sees the highest sales productivity.
The firm projects that Birkenstock’s store sales could more than double to approximately 21% of total revenue (from high single digits today) if the company achieves a more balanced direct-to-consumer and business-to-business sales mix approaching 50/50 over time.
Piper Sandler slightly reduced its fiscal third-quarter 2025 sales forecast due to foreign exchange impacts, while noting that Birkenstock’s July 1st price increase in the low single-digit range across its product portfolio appears manageable.
In other recent news, Birkenstock Holding plc has seen a series of notable developments. The company reported a strong second-quarter performance with an 18% increase in constant currency sales and a gross margin improvement of 140 basis points, according to BofA Securities. This performance led BofA to raise its price target to $73, maintaining a Buy rating. Similarly, Stifel analysts increased their price target to $70, highlighting Birkenstock’s revenue growth and improved gross margins, which exceeded their expectations.
Williams Trading also expressed confidence in Birkenstock, lifting the price target to $73 and reiterating a Buy rating, citing strong brand management and financial performance. Bernstein maintained a Market Perform rating with a $57 target, acknowledging the company’s direct-to-consumer growth and brand resilience. Despite currency headwinds impacting the Americas segment, William Blair reiterated an Outperform rating, noting healthy underlying sales trends and a U.S. price increase.
These recent developments highlight Birkenstock’s strategic efforts in managing tariffs, expanding retail presence, and leveraging brand strength to sustain growth. Analysts remain optimistic about the company’s future, with several firms raising their financial guidance and price targets.
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