Sandal maker Birkenstock is an attractive play with a long-term growth profile, according to Goldman Sachs. Analyst Louise Singlehurst upgraded the company’s shares to buy from neutral and kept her 12-month price target of $60, which suggests the stock can jump 18% from its latest close. “In terms of valuation, the recent relative softness versus the footwear/lifestyle peers provides an opportunity to revisit the investment thesis,” Singlehurst said in a note to clients. “Whilst we acknowledge uncertainty remains over the tariff environment … this presents an attractive entry point.” Shares of Birkenstock are down nearly 8% year to date amid general weakness in retail and fears about the strength of consumer spending. BIRK 1Y mountain Birkenstock performance over the past one year. The analyst singled out three big reasons to own Birkenstock: The company’s strong “product proposition” with attractive pricing power. Opportunities to increase market share in a highly fragmented space. Margin resilience, which the analyst attributed to a “fully vertically integrated manufacturing process in Europe (rare in footwear).” According to Singlehurst, Birkenstock’s range of products allows the company to add elements of newness, such as through embellishments and fabrics, while introducing a positive price mix. The company is capable of delivering between 4% and 5% pricing growth per year between 2025 and 2027, she said. Singlehurst also highlighted a major opportunity for growth in the highly fragmented footwear market. She said the brand’s success is underpinned by its “iconic footbed,” which helps to drive loyalty among its customers, who tend to buy multiple pairs. With Birkenstock’s share in the U.S less than 1%, she expects there’s room to expand even though the Americas region is its largest market. “We believe there is a compelling growth outlook in the region, driven by wholesale space expansion and increasing sales densities within existing doors,” she said.
