Allbirds slips as slowing revenue growth prompts Wedbush rating cut

Allbirds

06/03/2023 13:51

** Shares of eco-friendly sneaker maker Allbirds Inc  RIC 
down 2.6% at $2.98 premarket    
    ** Wedbush cuts rating on stock to "neutral" from
"outperform"; says concerned about BIRD's slowing revenue growth
and underperformance to peers
    ** Bigger rivals including On Running  ONON.N , Hoka and
HeyDude grew revenues between 55% and 70% in 2022, while BIRD's
rose just 11% despite new store openings, Wedbush estimates
    ** BIRD revenue had increased by 27% in 2021 
    ** Wedbush says BIRD has been discounting more than rivals
and consumers are less keen on making repurchases from the
brand; cuts price target on stock to $3 from $4
    ** Six of 14 brokerages rate BIRD "buy" or higher, and 8
"hold"; their median PT is $4
    ** BIRD set to report Q4 results on March 9, two weeks later
than it did last year; Wedbush says push back in reporting time
a sign of possible bad news coming  
    ** Up to Friday's close, BIRD shares have lost 55% of their
value in the last 12 months, hurt by two cuts to sales oulook;
Roger Federer-backed On Holding AG has gained marginally in the
same period

 (Reporting by Uday Sampath in Bengaluru)
 ((UdaySampath.Kumar@thomsonreuters.com; Twitter: https://twitter.com/sampath_uday
  ;))