A Closer Look at 18 Analyst Recommendations For Birkenstock Holding

Throughout the last three months, 18 analysts have evaluated Birkenstock Holding BIRK, offering a diverse set of opinions from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $48.06, a high estimate of $56.50, and a low estimate of $41.00. Highlighting a 0.91% decrease, the current average has fallen from the previous average price target of $48.50.

Understanding Analyst Ratings: A Comprehensive Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive Birkenstock Holding. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Birkenstock Holding. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Birkenstock Holding compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Birkenstock Holding's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Birkenstock Holding analyst ratings.

Delving into Birkenstock Holding's Background

Birkenstock Holding PLC is a company that manufactures and sells footbed-based products, including sandals, closed-toe silhouettes, and other products, such as skincare and accessories, for everyday, leisure, and work. The company operates in four operating segments based on its regional hubs: Americas, Europe and Asia, the South Pacific and Australia (ASPA), and the Middle East, Africa, and India (MEAI). The company sells its products through two main channels: business-to-business (B2B) (comprising sales made to established third-party store networks) and direct-to-consumer (DTC).

A Deep Dive into Birkenstock Holding's Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Birkenstock Holding's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2023, the company achieved a revenue growth rate of approximately 24.96%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 13.34%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Birkenstock Holding's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.7%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.34%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Birkenstock Holding's debt-to-equity ratio is below the industry average. With a ratio of 0.82, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.