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Investing.com - UBS raised its price target on Birkenstock Holding plc (NYSE:BIRK) to $77.00 from $76.00 on Tuesday, while maintaining a Buy rating on the footwear company’s stock. According to InvestingPro data, the company currently trades at $49.68 with a market capitalization of $9.14 billion, suggesting potential upside based on analyst targets.
The price target adjustment comes as UBS believes Birkenstock’s underlying topline trends were solid in the third quarter, though likely not strong enough to prompt the company to raise its fiscal year 2025 ex-FX revenue growth outlook. The company has demonstrated strong performance with impressive gross profit margins of 59% and revenue growth of approximately 20% over the last twelve months.
UBS expects Birkenstock will be able to manage incremental tariff and foreign exchange headwinds while reaffirming its FY25 adjusted EBITDA margin guidance.
The options market is pricing in a potential move of plus or minus 8.9% for Birkenstock shares over the earnings announcement, compared to a historical average move of 6.7%.
UBS anticipates less volatility than the 8.9% swing currently implied by options pricing, seeing a balanced upside/downside outlook for the stock around the upcoming earnings event.
In other recent news, Birkenstock Holding plc has reported several significant developments. Fitch Ratings upgraded Birkenstock’s Long-Term Issuer Default Rating to ’BB+’ from ’BB’, reflecting the company’s strong profitability and conservative financial policy. Goldman Sachs has also upgraded Birkenstock’s stock rating from Neutral to Buy, citing attractive growth opportunities and strong product pricing power. Meanwhile, Piper Sandler reiterated an Overweight rating despite tariff concerns, noting an oversold valuation based on future projections. William Blair maintained its Outperform rating but adjusted revenue estimates due to currency impacts, reducing the Americas growth rate. Bernstein SocGen Group reiterated a Market Perform rating, with a price target of $57, highlighting the company’s direct-to-consumer growth and increased confidence in brand equity. Birkenstock’s recent performance exceeded modest market expectations, driven by a rebound in direct-to-consumer sales and the success of new product segments. These developments indicate a positive outlook for the company amid challenging market conditions.
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