Dip in Birkenstock a buying opportunity, says Williams Trading

Williams Trading tells investors in a research note to buy Birkenstock shares on the weakness. Birkenstock’s Q4 sales, gross margin, and adjusted EBITDA results were better than preliminary numbers provided ahead of the IPO, and better than consensus expectations, and the initial FY24 guidance is conservative, based on management commentary, the firm’s channel checks, and some commentary at the recent ICR Conference, Williams says. The firm, which made no change to its Buy rating or $60 price target, is confident that management’s obsessions with brand sanctity and commitment to its “engineered distribution” make the outlook over the short and long term very promising.