Beyond The Numbers: 6 Analysts Discuss Birkenstock Holding Stock

In the preceding three months, 6 analysts have released ratings for Birkenstock Holding BIRK, presenting a wide array of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $67.33, a high estimate of $72.00, and a low estimate of $60.00. This current average represents a 3.36% decrease from the previous average price target of $69.67.

Diving into Analyst Ratings: An In-Depth Exploration

A comprehensive examination of how financial experts perceive Birkenstock Holding is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Birkenstock Holding. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Birkenstock Holding compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Birkenstock Holding's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Birkenstock Holding's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Birkenstock Holding analyst ratings.

Get to Know Birkenstock Holding Better

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. It sells its products through two main channels: business-to-business (B2B) which comprises sales made to established third-party store networks, and direct-to-consumer (DTC) which comprises sales made on globally owned online stores through the Birkenstock.com domain and sales made in Birkenstock retail stores. The company's reportable segments are based on its regional hubs and include: the Americas which is also its key revenue-generating segment; Europe; and Australia, Japan, India, China, and the United Arab Emirates (APMA).

Birkenstock Holding: Delving into Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Birkenstock Holding's revenue growth over a period of 3M has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 19.41%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 5.56%, the company may need to address challenges in 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 0.75%, 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 0.41%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.51, Birkenstock Holding adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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