Wall Street brokerages largely initiated Birkenstock (BIRK.N) with their top ratings, pointing to a likely boost from the German luxury sandal maker's recent investments to increase capacity, expansion into newer styles and brand loyalty.
with their top ratings, pointing to a likely boost from the German luxury sandal maker's recent investments to increase capacity, expansion into newer styles and brand loyalty.
The company's shares edged up nearly 1% to $41.54 after opening lower on Monday, as many of the 22 underwriters, including J.P. Morgan and Goldman Sachs, started coverage following the expiry of the mandated quiet period. "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," analysts at Jefferies said.
At current levels, Birkenstock has a market value of about $7.7 billion, compared with the $4.35 billion that L Catteron, the U.S. private-equity firm backed by French billionaire Bernard Arnault and his luxury goods empire LVMH"While we view it as a strong brand with unique attributes, we think outsized growth on top of the robust recent trends will be difficult," BofA Global Research analyst Lorraine Hutchinson wrote in a note.
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