Allbirds’ Strategic Restructuring and Growth Potential: A Buy Recommendation

Analyst Tom Forte of Maxim Group reiterated a Buy rating on Allbirds (BIRD – Research Report), retaining the price target of $14.00.

Tom Forte’s rating is based on Allbirds’ strategic initiatives and financial positioning. The company’s management has embarked on a comprehensive restructuring and turnaround plan, which includes exiting inconsistent inventory, transitioning international operations to a distributor model, and optimizing its physical store footprint. These efforts have laid a robust foundation for sustainable growth, focusing on enhancing product offerings, communication, and customer experience.
Additionally, Allbirds is set to launch its next-generation products, which are expected to improve gross margins and mitigate tariff impacts. The company’s financial health is underscored by its cash reserves and lack of debt, although additional capital may be needed to support its turnaround. The stock’s current trading at a discount compared to peers, coupled with a promising outlook for profitable sales growth, supports the Buy rating.

Based on the recent corporate insider activity of 21 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.