Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Allbirds Downgraded on Macroeconomic Deterioration

Stock Markets Aug 10, 2022 19:06
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
BIRD
-1.96%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Sam Boughedda

Despite a 4% climb in its share price Wednesday, Allbirds Inc (NASDAQ:BIRD) stock was downgraded to Equal-Weight with a $5 per share price target by a Morgan Stanley analyst.

The analyst said in a research note that macroeconomic deterioration, slower sales growth, and a potentially longer timeline to profitability have likely pushed out the re-rating catalyst they had hoped for, and they believe the stock could remain range-bound until the path to profitability is more clear.

"Since the start of the year, we've observed a deceleration in both macroeconomic & industry-specific data points. BIRD confirmed this trend on its 2Q22 earnings report last night, & as a result, prudently cut its FY guidance. Higher macroeconomic uncertainty limits both near & medium-term visibility, & in our view makes for limited room for upward earnings revisions (even on lower levels), the #1 driver of stock price in our space," wrote the analyst.

Despite today's share price rise, Allbird's is down 77.5% in the last 12 months and 69.2% in 2022.

"This macroeconomic worsening & BIRD's subsequent revenue growth slowdown further clouds the business' path to profitability. To us, valuation re-rating is dependent on better profitability visibility. And until the path is more clear or macroeconomic volatility subsides, we fear the stock could remain range-bound for some time," added the analyst.

Allbirds Downgraded on Macroeconomic Deterioration
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email