Analyst Lorraine Hutchinson from Bank of America Securities reiterated a Buy rating on Birkenstock Holding plc and keeping the price target at $73.00.
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Lorraine Hutchinson’s rating is based on Birkenstock Holding plc’s potential for significant sales and margin growth, despite the recent decline in share price due to currency fluctuations. The company is poised to capitalize on growth opportunities in the closed-toe shoe segment and the Asia-Pacific region, which could lead to positive financial revisions. The APAC market, in particular, represents a substantial opportunity for expansion, as Birkenstock’s current sales penetration is much lower than the industry average.
Additionally, Hutchinson notes that Birkenstock’s ability to manage tariffs through strategic pricing, coupled with its ownership of production facilities in Europe, provides a competitive advantage. The company’s focus on increasing average selling prices and expanding its closed-toe product line is expected to drive further margin expansion. Furthermore, Birkenstock’s strong margin profile and potential for capital return could enhance its earnings power, supporting the Buy rating with a price objective of $73.
In another report released on July 29, Evercore ISI also maintained a Buy rating on the stock with a $68.00 price target.