Despite a nearly 70% decline for the stock in 2022, Baird analyst Mark R. Altschwager voiced bullishness on the long term prospects for Allbirds ( NASDAQ: BIRD ).
“Allbirds is in the early innings of its growth journey, with innovation around new products/materials core to its strategy,” he explained. “At current valuation, we think the buy side is already discounting a lower-growth outlook and delayed profitability, setting up attractive risk/reward for long-term investors.”
Indeed, shares have begun to show signs of life in recent weeks, rising over 20% in the past month. Still, it is worth noting that this is a bounce from an over 80% decline since its IPO.
Altschwager acknowledged this bearish trajectory and noted that “near term trading dynamics may remain volatile.” Additionally, he noted that poor historical performance and recession risks may scare away would-be investors ahead of the company’s earnings release slated for early August as estimates may need to be reset.
He reiterated an “Outperform” rating on the stock alongside a $9 price target. It is worth noting, however, that Altschwager has held a Buy-equivalent rating on the name since late November 2021.
Read Piper Sandler’s recent consumer retail review that included an assessment of Allbirds.
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Allbirds in ‘early innings of its growth journey’ - Baird