Raymond James initiated coverage of Birkenstock Holding with an Outperform rating and a $52 price target, calling the brand a compelling growth opportunity at an attractive valuation. Analyst Rick Patel noted that despite its founding in 1774, Birkenstock should be viewed as a growth story, with revenue expanding at a 22% compound annual growth rate from fiscal 2021 to 2025, compared to 14% for softlines peers. The firm 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%. Growth levers include increasing production capacity, assortment diversification into closed-toe footwear, deeper wholesale penetration, new store openings, and international expansion, with Asia-Pacific having potential to double and EMEA returning to growth. Raymond James believes Birkenstock is more supply-constrained than demand, viewing new distribution center capacity as a key catalyst, and forecasts unit growth at approximately 10% CAGR with average selling prices rising more than 3–5% annually. On valuation, Patel said the 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.
Birkenstock Holding plcRaymond James initiated coverage with Outperform rating and $52 price target, citing attractive valuation and growth story.
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