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Investing.com -- Goldman Sachs upgraded Birkenstock (NYSE:BIRK) to Buy from Neutral, citing the footwear maker’s resilient margins, pricing power, and room for market share gains. The brokerage set a price target of €60, implying 21% upside.
Goldman pointed to three main reasons, including strong pricing across Birkenstock’s range of products, the opportunity to expand in a fragmented global footwear market, and stable profitability supported by its fully in-house European manufacturing.
Birkenstock’s share price has lagged peers in recent months, down 17% over the past quarter, making the valuation more attractive.
The stock now trades at 25 times expected 2025 earnings, below its 12-month average of 28x.
The analysts expect Birkenstock to deliver around 15% annual EBIT growth between 2025 and 2028. They estimate annual pricing increases of 4–5%, helped by product variety and brand strength, including the expansion of its entry-level EVA line and premium offerings.
Birkenstock’s market share remains below 1% in the U.S., its largest region, but Goldman sees room to grow via wholesale expansion and category extensions like children’s and professional footwear.
U.S. sales are expected to rise at a 10% compound annual rate from 2025 to 2027.
The company’s vertically integrated manufacturing in Germany and Portugal, covering nearly all of its raw materials, supports profitability, with Goldman forecasting a 26% adjusted EBIT margin for 2025.
While risks around U.S. tariffs remain, Goldman’s scenario analysis shows potential upside of 51% if growth accelerates, versus 12% downside in a more adverse case.