Birkenstock Holding: Telsey Advisory Group maintains Outperform, raises PT to $70.

Birkenstock Holding: Telsey Advisory Group maintains Outperform, raises PT to $70.

Birkenstock Holding plc (NYSE: BIRK) shares traded higher on Thursday following the company's reaffirmation of its outlook and projection of stronger-than-expected fiscal 2025 revenue. Despite missing revenue forecasts in the third quarter, the company's guidance has been met with optimism from analysts, who maintain an Outperform rating with a price target of $70.

At an investor meeting held at its Munich headquarters, Birkenstock announced it expects to generate at least €2.09 billion (~$2.25 billion) in fiscal 2025 revenue, surpassing its prior range. The company also projected fourth-quarter sales of at least €520 million, representing a 14% increase on a reported basis and an 18% rise in constant currency. This projection was made despite currency headwinds, with the company maintaining an adjusted EBITDA margin forecast of 31.3% to 31.8%.

The company's strategy to expand capacity across Europe was further underscored by its recent acquisition of a production and logistics facility near Dresden. The agreement, signed on September 23, involves a purchase price of €18 million for a site spanning 78,000 square meters of developed space and another 80,000 square meters of land, secured at €240 per square meter after the prior owner’s bankruptcy. The property is expected to be operational by fiscal 2027 and will support sandal, clog, and footbed production.

At the time of writing, BIRK shares were trading higher by 4.76% to $47.50 premarket Birkenstock Promises Bigger 2025 Sales^[1].