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Jefferies has reasserted its confidence in Birkenstock Holding plc (NYSE: NYSE:BIRK), maintaining a Buy rating with a steadfast price target of $75.00.
The firm's analysis suggests a steady performance for the footwear company, anticipating another quarter of business as usual. This outlook is based on indications of market share gains in open-to-buy and continued strength in the direct-to-consumer (DTC) sales channel.
Despite facing ongoing capacity-related challenges that likely affected gross margins and adjusted EBITDA percentages in the third quarter, Birkenstock's management has been transparent about these near-term impacts.
Jefferies expects these issues to improve by 2025. The firm's stance is that Birkenstock offers an appealing long-term growth prospect for investors.
The analysis points to Birkenstock's potential for expansion in the future. Jefferies has indicated that the company has a significant opportunity to grow, which supports their decision to reiterate the Buy rating and $75 price target.
In other recent news, Birkenstock released 14 million shares in a secondary offering, maintaining existing shareholders' equity. Birkenstock continues to project sales growth of over 20% and an EBITDA range of €535 to €545 million for fiscal year 2024.
Analysts from various firms have adjusted their ratings and price targets for Birkenstock. Citi reinstated the company with a 'Buy' rating, while UBS upgraded it from 'Neutral' to 'Buy', highlighting the company's successful direct-to-consumer expansion strategy and growth in the Asia-Pacific region.
Deutsche Bank also resumed coverage, giving Birkenstock a 'Buy' rating due to the company's strong margins and potential for sustained revenue growth.
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