Birkenstock (NYSE:BIRK): Evaluating Valuation Following Recent Decline in Share Price
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
Updated: Oct 19 20250mins
Stock Performance Overview: Birkenstock Holding's stock has seen a decline, with a 90-day return of -15.61% and a year-to-date return of -26.79%, prompting investors to reassess its valuation despite ongoing revenue growth.
Valuation Insights: The stock is currently trading at $41.94, significantly below the estimated fair value of $69.17, raising questions about whether it presents a compelling investment opportunity given its solid fundamentals.
Growth Potential: Investments in production capacity and logistics aim to address supply constraints, potentially leading to increased revenue and earnings, although risks remain regarding production limitations and shifts in consumer demand.
Investment Strategies: The article suggests exploring various investment opportunities, including high insider ownership stocks, dividend stocks, and undervalued stocks, while emphasizing that the analysis is not financial advice.
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Analyst Views on BIRK
Wall Street analysts forecast BIRK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BIRK is 67.48 USD with a low forecast of 57.00 USD and a high forecast of 75.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 43.710
Low
57.00
Averages
67.48
High
75.00
Current: 43.710
Low
57.00
Averages
67.48
High
75.00
Guggenheim
NULL
to
Buy
initiated
$60
2025-12-09
New
Reason
Guggenheim
Price Target
$60
2025-12-09
New
initiated
NULL
to
Buy
Reason
Guggenheim initiated coverage of Birkenstock with a Buy rating and $60 price target. The retail sector still seems to be perceived as "structurally sick," but the firm says "holiday brought the cheer," tariffs have been manageable so far and "most importantly and likely going unnoticed" is the fact that the majority of the firm's coverage actually operates at, or close to, their gross margin peaks.
JPMorgan
Overweight
downgrade
$81 -> $66
2025-09-19
Reason
JPMorgan
Price Target
$81 -> $66
2025-09-19
downgrade
Overweight
Reason
JPMorgan lowered the firm's price target on Birkenstock to $66 from $81 and keeps an Overweight rating on the shares after hosting meetings with management. The firm models the company's fiscal Q4 revenue growth and gross margin above consensus.
UBS
Jay Sole
Buy
maintain
$76 -> $77
2025-08-05
Reason
UBS
Jay Sole
Price Target
$76 -> $77
2025-08-05
maintain
Buy
Reason
UBS analyst Jay Sole raised the firm's price target on Birkenstock to $77 from $76 and keeps a Buy rating on the shares. The firm sees a balanced upside/downside skew ahead of the Q3 earnings report, the analyst tells investors in a research note.
Goldman Sachs
Neutral -> Buy
upgrade
$60
2025-07-24
Reason
Goldman Sachs
Price Target
$60
2025-07-24
upgrade
Neutral -> Buy
Reason
Goldman Sachs upgraded Birkenstock to Buy from Neutral with an unchanged price target of $60. The firm sees "robust" momentum and an attractive valuation for Birkenstock in a challenging macro backdrop. The company has a "strong" product proposition with pricing power along with opportunities to win share in a "highly fragmented" footwear market, the analyst tells investors in a research note. Goldman also expects Birkenstock's vertically integrated manufacturing process in Europe to drive resilient margins.
See All Ratings
About BIRK
Birkenstock Holding plc operates through Birkenstock Group B.V. & Co. KG and its subsidiaries. Birkenstock is a global brand, which has developed a unisex portfolio of footbed-based products that serve consumers of all geographies, genders, ages, and income levels. Its proprietary footbed, which reflects the anatomy of the human foot, represents the foundation of its brand and products. It operates a vertically integrated manufacturing base and produces all its footbeds in Germany. BIRKENSTOCK offers a wide range of products that go beyond footwear, including sleep systems and natural cosmetics, catering to both entry-level and luxury markets. The Company operates its channels, utilizing the business-to-business (B2B) channel to facilitate brand accessibility while fully engaging consumers in its direct-to-consumer (DTC) channel, which offers its complete product range and access to its silhouettes.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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