2023-03-10 07:24:05 ET
Allbirds ( NASDAQ: BIRD ) was downgraded to Neutral from Buy at Baird after missing earnings expectations and offering weak guidance.
The footwear company fell short of Q4 expectations and signaled weak demand ahead. Additionally, continued promotional activity in the footwear and apparel space are expected to weigh on the bottom line into 2023.
The disappointing earnings results along with an unexpected CFO departure prompted a downgrade from Bairda analyst Mark Altschwager.
“Management's strategy to improve growth and profitability (target EBITDA breakeven pushed to 2025) marks a material shift away from the prior playbook, compounded by an unexpected CFO departure,” he explained. “With major change in the product strategy, operating model, and leadership team on tap in an already uncertain macro backdrop, we are stepping to the sidelines until there are clearer signs of stabilization.”
He slashed his price target to $2 from a prior $7. Shares of Allbirds ( BIRD ) fell 22.46% in premarket trading on Friday.
Read the earnings call transcript .
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Allbirds cut to Hold at Baird after earnings disappointment