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Investing.com - Stifel lowered its price target on Birkenstock Holding plc (NYSE:BIRK) to $66.00 from $70.00 on Thursday, while maintaining a Buy rating on the footwear company’s stock. According to InvestingPro data, the company maintains impressive gross profit margins of 59% and strong financial health with a current ratio of 3.06.
The firm cited Birkenstock’s continued market share gains at high margins despite challenges in the casual footwear market. Stifel noted the company’s shift toward the B2B segment is EBITDA margin accretive but requires greater volume to achieve equivalent revenue levels. The company’s current valuation metrics show an EV/EBITDA of 15.03x, with InvestingPro analysis suggesting the stock is slightly undervalued at current levels.
Stifel expressed confidence in Birkenstock’s near-term outlook, suggesting the fourth-quarter setup appears to present a low hurdle with potential for the company to exceed guidance. The firm also highlighted expectations for continued execution strength into fiscal year 2026.
The price target adjustment reflects a 15.0x EV/EBITDA multiple and a EURUSD exchange rate of 1.172. Despite the target reduction, Stifel reaffirmed its fiscal year 2026 adjusted EBITDA estimate of €737 million for the company.
Stifel recommended Birkenstock as a high-growth, profitable share gainer with continued white-space opportunity, pointing to forward order visibility, increased prices, potential DTC reacceleration, and gross margin recapture as positive factors.
In other recent news, Birkenstock Holding plc is preparing to release its fiscal third-quarter 2025 results, with Piper Sandler maintaining an Overweight rating and a price target of $65.00. The firm anticipates a 16% growth in currency-neutral sales for the quarter, although a foreign exchange headwind is expected to reduce reported growth to 12%. Stifel also reaffirmed its Buy rating and set a price target of $70.00, noting that currency challenges could affect revenue and profitability but that the brand’s fundamentals remain strong. Meanwhile, UBS increased its price target to $77.00, maintaining a Buy rating, based on solid topline trends, although it suggested these trends might not lead to an upward revision of the company’s fiscal year 2025 revenue growth outlook. In addition, Fitch Ratings upgraded Birkenstock’s Long-Term Issuer Default Rating to ’BB+’ due to strong profitability and a conservative financial policy. Goldman Sachs upgraded its rating to Buy, maintaining a $60.00 price target, citing Birkenstock’s strong growth outlook and product proposition. These developments indicate a mix of optimism and caution among analysts regarding Birkenstock’s financial performance and market positioning.
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