Birkenstock rises as BofA turns bullish on sales momentum, margins
** Shares of Birkenstock BIRK.N up 2.2% at $56.65 on Thurs after BofA Global Research upgrades German sandal maker to "buy" from "neutral", saying sustained sales momentum and strong margins will be rewarded with a higher multiple
** BofA boosts PT by $3 to $65, implying ~17% upside to stock's last close
** Given recent struggles of key retail growth stocks, BIRK's consistency stands out and deserves a premium, BofA analyst Lorraine Hutchinson says in note to clients
** Increased capacity allowing co to realize stronger sales growth, Hutchinson says, adding she expects this to continue, with its mid- to high teens sales growth target over medium term looking achievable
** Hutchinson models F24E EBITDA margin of 31% and expects margins to expand in F25 as BIRK brings factories closer to full production with waning headwind from ramp up costs
** Now, 14 of 17 analysts rate BIRK "strong buy" or "buy", rest "hold" with $65 median PT, per LSEG
** L Catterton and luxury goods giant LVMH LVMH.PA-backed BIRK's shares up 16% YTD with move on Thurs
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
</body></html>Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
