Shares of Birkenstock (BIRK) are rising after the company received an upgrade from UBS to Buy from Neutral, raising the footwear retailer’s price target to $85 from $52. The firm cites the company’s success in its current expansion strategy.
Yahoo Finance Reporter Jared Blikre joins Catalysts to break down the company’s recent performance.
For more expert insight and the latest market action, click here to watch this full episode of Catalysts.
Video Transcript
Now Birken stock shares are rising after U BS upgraded the stock to buy from neutral.
You can see the stock is up over two and a quarter percentage points here, hiking its price target on the stock to $85 from $52 the saying the company is successfully executing its expansion strategy.
Yah finances.
Jared joins us to discuss, and I was just taking a look here at what’s going on with the stock.
It looks like he I risk management also just raised the recommendation on birken stock from sell up to so interesting to see this amount of analyst movement on this stock, why are we seeing all of this?
And it comes over a month after their last earnings report.
So sometimes it takes a while for price action to get people interested and say, Well, maybe there is something in that report that we like.
So I think investors are focusing on a couple of things here.
S in particular, is noting their direct to consumer building out effort that has been going well, and he’s also noting that there are a couple of overhangs that have been lifted or in the process of being lifted.
One is that last year they got that incredible Barbie bump.
And this year they are lapping that.
So can they keep up that incredible growth?
Well, that can be tough to do on a short term basis.
Um, And then also, the other thing is that they’re saying guidance leaves little to little room for further upside in.
Otherwise, in other words, that the company has really met a lot of the guidance that they’ve expected and pronounced for themselves.
So you put it all together.
Uh, this price tag target, I believe it’s a street high now.
$85 city, uh, separately, is reinstating a buy with a price target set set to $65.
And, uh, I should know too.
There was a share sale by corporate insiders last week.
Uh, the reports are that it was for tax purposes.
It doesn’t seem to have mattered.
Sometimes people think insiders are selling, but, uh, not always the case there.
So if we go to the Wi Fi Interactive, I thought we would chart this real quickly, and today you can see we are up 2.4%.
Uh, but let me put a max turn on because this, uh, stock came to market less than a year ago or about, and you can see it’s been a steady trend upwards.
I just note that because Birkenstock is a new company coming to market, and a lot of these new issues in the IPO market have not done so well.
But this is a company that’s at least price performance Wise has been able to capitalise on some of that earnings momentum, and it’s an example of one of the companies that is clearly not an A I play at all right, I’m trying to think, No, no embedded there, I hope no sourcing from you about an A I chips play when it comes to Birkenstock.
So it does paint this idea that we hear a lot from guests into context, that stock picking is becoming increasingly important given the concentration real quick.
If we could go back to the Wi Fi Interactive, I’m going to sort this the apparel heat map by performance year to date, and you’re gonna see what a bifurcated market it is.
You got winners and losers and, uh so congratulations.
If you’re in the winners camp, broke stock is
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