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Investing.com - Stifel maintained its Buy rating and $66.00 price target on Birkenstock Holding plc (NYSE:BIRK) as the footwear company moves to acquire its Australian distributor. According to InvestingPro data, the stock currently trades at $42.71, with analysts maintaining a strong buy consensus and targets ranging from $57 to $80.
The acquisition represents an extension of Birkenstock’s engineered distribution strategy, which Stifel believes will strengthen price realization, gross margin, and long-term profit potential for the company. The company already demonstrates impressive gross margins of 59.3% and robust revenue growth of 17.6% over the last twelve months.
Stifel projects the deal will add approximately 2.6 percentage points to forward revenue growth upon closing, with at least comparable levels of profit in euro terms, though it may cause modest adjusted EBITDA margin dilution initially.
Birkenstock has been consistently consolidating its distributor network, reducing distributor mix from 32% of sales in fiscal 2018 to 14% in fiscal 2022, with the Australian operation reportedly representing the largest remaining distributor in the company’s network.
Other distributors still operating in Birkenstock’s system include those in Italy, Turkey, Greece, Taiwan, and North Africa, with Stifel maintaining its $66 twelve-month target price, representing 15.4x EV/EBITDA on its fiscal 2026 estimated adjusted EBITDA of €737 million.
In other recent news, Birkenstock Holding plc reported its third-quarter 2025 earnings, surpassing earnings per share (EPS) expectations with a result of €0.69 compared to the forecast of €0.61. However, the company’s revenue came in slightly below expectations at $635 million, missing the forecasted $641.2 million. The company has also raised its fiscal fourth-quarter 2025 sales guidance to at least 18% growth on a constant currency basis, translating to at least 14% reported growth, while maintaining its annual EBITDA guidance.
Additionally, Birkenstock has received positive attention from several analyst firms. Piper Sandler maintained an Overweight rating with a $65 price target, while Stifel reiterated a Buy rating, setting a $66 price target due to the company’s brand strength and growth potential. BTIG also maintained a Buy rating with a $72 price target, emphasizing Birkenstock’s growth opportunities in product and distribution channels. These developments reflect the company’s strong position and potential for future growth.
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