In a report released yesterday, Lorraine Hutchinson from Bank of America Securities reiterated a Buy rating on Birkenstock Holding plc, with a price target of $73.00.
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Lorraine Hutchinson’s rating is based on Birkenstock Holding plc’s strong growth prospects and strategic initiatives. The company has shown significant revenue growth, with a preannouncement indicating an 18% increase for the fourth quarter, surpassing previous estimates. This growth is driven by the company’s expansion in product offerings, distribution channels, and particularly in the Asian market, which is growing at twice the rate of the overall business.
Additionally, Birkenstock is effectively targeting younger consumers through new products and a focus on business-to-business channels, which are growing faster than direct-to-consumer sales. The company’s efforts to expand production capacity and improve distribution capabilities further support its potential for sustained growth. Despite currency headwinds, Birkenstock’s EBITDA margins remain strong, and the company’s strategic investments, such as acquiring a new production facility, are expected to enhance operational efficiency and flexibility. These factors contribute to Hutchinson’s optimistic outlook and Buy rating for Birkenstock’s stock.
In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $72.00 price target.