Raymond James bullish on Birkenstock, sees growth story at attractive valuation

Investing.com -- Raymond James initiated coverage of Birkenstock Holding with an Outperform rating and a $52 price target in a note on Wednesday, arguing that the brand represents a compelling growth opportunity trading at an attractive valuation.

Analyst Rick Patel said that "despite being founded in 1774," Birkenstock should be considered a growth story, with revenue expanding at a 22% compound annual growth rate from fiscal 2021 to 2025, compared to 14% for softlines peers.

Raymond James forecasts revenue growth of 11.0% in fiscal 2026 and 12.8% in fiscal 2027, with an estimated revenue CAGR of 12% through fiscal 2027 against a peer average of 8%.

Patel highlighted several growth levers, including increasing production capacity, assortment diversification into closed-toe footwear, deeper penetration with existing wholesale partners, new store openings and international expansion.

He noted Asia-Pacific has "potential to double" and that EMEA is "returning to growth" following a marketplace cleanup.

Raymond James believes Birkenstock is "more supply-constrained than demand," viewing new distribution center capacity as a key catalyst for capturing incremental revenue. The firm forecasts unit growth at approximately 10% CAGR, with average selling prices rising more than 3–5% annually.

On valuation, Patel said Birkenstock's fiscal 2027 price-to-earnings ratio of approximately 15.5 times looks attractive against estimated EPS growth of 29% in fiscal 2027 and 20% in fiscal 2028.

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