2023-03-06 07:40:24 ET
Allbirds ( NASDAQ: BIRD ) stock slid in premarket trading on monday after Wedbush shifted to Neutral on the name.
The firm’s analysts indicated that while the footwear manufacturer could have a “long potential runway for growth,” competition from brands including Hoka and HeyDude are key concerns. Additionally, decelerating sales trends are a key concern, especially as margins remain squeezed in a promotional retail environment.
“We've seen elevated promotional activity in recent months, we received cautious demand indicators in a recent consumer survey we ran, and we've also observed declining online search trends,” the team said.
The analysts see significant risks that the company’s earnings report and guidance due on Thursday disappoint. As such, the team shifted to Neutral from a prior Buy rating and lowered their price target to $3 from $4.
Shares of the San Francisco-based footwear and apparel maker slid 2.3% prior to Monday’s opening bell.
Read more on the earnings expectations for the upcoming report .
For further details see:
Allbirds stock slips as Wedbush steps to sidelines