Analyst Paul Lejuez from Citi maintained a Buy rating on Birkenstock Holding plc (BIRK – Research Report) and keeping the price target at $65.00.
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Paul Lejuez has given his Buy rating due to a combination of factors that highlight Birkenstock Holding plc’s strong performance and strategic positioning. The company reported a robust 19% increase in constant currency sales for the second quarter, indicating strong global brand momentum. Additionally, the gross margin improvement of 140 basis points surpassed expectations, prompting management to raise their EBITDA margin guidance for fiscal year 2025, despite facing foreign exchange and tariff challenges.
Lejuez also notes that Birkenstock is well-positioned to capitalize on its pricing power and brand momentum, which are crucial advantages in times of market disruption. The company’s management plans to implement global price increases to mitigate tariff impacts, further supporting margin resilience. With a clear path to strong sales and earnings per share growth for the remainder of fiscal year 2025, Lejuez views Birkenstock as a leading player in the retail sector, justifying the Buy rating.
Lejuez covers the Consumer Cyclical sector, focusing on stocks such as Urban Outfitters, On Holding AG, and Abercrombie Fitch. According to TipRanks, Lejuez has an average return of 8.9% and a 57.00% success rate on recommended stocks.
In another report released yesterday, BMO Capital also reiterated a Buy rating on the stock with a $75.00 price target.