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Birkenstock made its New York Stock Exchange debut last month at
$41, below its initial public offering price. The company priced
its IPO at $46 per share, in the middle of its indicated price
range.
The IPO had nearly two dozen underwriters, all of whom had to
wait until this weekend to start coverage as required by
industry practice.
Jefferies is among the most bullish, expecting the stock to end
next year at $50, which represents an over 21% jump from current
levels.
"Given its historic brand and loyal customer base, we believe
the company is well-positioned to drive strong top-line growth,
maintain its attractive margin profile, and expand its
addressable market," said analysts at Jefferies. Goldman Sachs
sees an opportunity for market share gains, supported by the
easing of supply constraints, as well as Birkenstock's pricing
ability.
J.P. Morgan said it expects the management's mid-to-high teens
annual revenue growth forecast as a "prudent" baseline.
But not all analysts are as optimistic. Morgan Stanley is
skeptical of any upside, assigning a price target of $41 and an
"equal-weight" rating, as it sees most catalysts as already
priced in. HSBC analysts, meanwhile, expect recent production
investments to weigh on gross margin.
Price targets from other brokerages ranged between $42 and
$48.5.
Birkenstock shares fell in the days after its debut on Oct. 11,
dropping as low as $35.83, following in the footsteps of marquee
names such as chip designer Arm Holdings, grocery delivery app
Instacart, and marketing automation firm Klaviyo, whose
lackluster share moves post-debut have doused hopes for an IPO
market resurgence.
Birkenstock has since recovered, but barely breached its debut
open price, closing on Friday at $41.16.
(Reporting by Reshma Rockie George and Susan Mathew in Bengaluru;
Editing by Maju Samuel)
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