With BofA Securities Buy Rating, Will Allbirds Stock Take Flight?

Allbirds Inc.’s BIRD focus on sustainability gives it a “unique competitive moat,” according to BofA Securities.

The Allbirds Analyst: Lorraine Hutchinson initiated coverage with a Buy rating and a price target of $23.

The Allbirds Thesis: Its innovative product development focused on sustainability positions the company to capture market share in the $1.8 trillion global athletic footwear and apparel market, Hutchinson said in the initiation note.

“Allbirds’ digitally-led, all direct to consumer retail distribution strategy has resulted in a deep understanding of its customer and 98% of sales at full price,” she wrote.

“We are modeling 2yr sales CAGR (’21-‘23) of 28% and are forecasting break-even adjusted EBITDA by 2023. We view BIRD’s medium-term targets, which include sustained 20-30% revenue growth, 60%+ gross margins, and mid to high teens adjusted EBITDA margins, as achievable,” the analyst further mentioned.

BIRD Price Action: Shares of Allbirds are down by 3.49% to $19.06 at the time of publication Monday.

Photo by Jacques LE HENAFF on Unsplash

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