William Blair analyst Dylan Carden has maintained their neutral stance on BIRD stock, giving a Hold rating on November 1.
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Dylan Carden has given his Hold rating due to a combination of factors impacting Allbirds’ recent performance and future outlook. The company’s third-quarter revenue was notably below expectations, with a significant year-over-year decline attributed to distributor transitions and planned store closures. This decline was compounded by weaker-than-anticipated performance in their core legacy products.
Despite these challenges, there were some positive aspects, such as margins slightly exceeding expectations and adjusted EBITDA losses being better than consensus. Additionally, new product launches have shown promise, contributing to improving monthly trends. However, the risk remains regarding the extent to which new products can drive the business forward, especially given the lowered full-year guidance. The valuation context, with limited visibility and reliance on fourth-quarter performance, further justifies the Hold rating.
In another report released on November 1, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $9.00 price target.
Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BIRD in relation to earlier this year.