BIRD - Cowen cuts Allbirds to Hold voices caution on planned turnaround

2023-03-13 08:57:29 ET

Allbirds ( NASDAQ: BIRD ) cut to Hold after an earnings disappointment and the departure of its CFO.

Equity analyst John Kernan explained that the company’s plans to reorganize the business remain a question mark. Additionally, the long runway to breakeven leaves the stock difficult to recommend.

“Our view is that the expanded competitive set and low barriers to entry across footwear and apparel renders this a complex turnaround, balanced by a brand that has a distinctive product, highlighted by sustainable materials and comfort,” Kernan wrote.

As such, he cut his rating on the stock to Neutral from a prior Outperform and trimmed his price target to $1.50 from $4. Allbirds stock fell nearly 50% on Friday .

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