Allbirds downgraded to Market Perform from Outperform at Telsey Advisory

Telsey Advisory analyst Dana Telsey downgraded Allbirds to Market Perform from Outperform with a price target of $2.25, down from $4, post the Q4 results. The company is facing continued pressure on discretionary demand related to macroeconomic challenges, including high inflation, the analyst tells investors in a research note. In addition, its brands have underperformed as new products have not resonated with the core customer base, adds the firm. Telsey says the need to liquidate inventory will lead to gross margin erosion in 2023 for Allbirds.