Allbirds is set to release financial results for the first time as a public company.
Ahead of its announcement on Tuesday, analysts are divided over their recommendations for the eco-friendly shoe company and make recommendations on whether or not to buy shares in the company.
Allbirds, the green brand founded in 2015, made its market debut earlier this month. The company sold 20,192,307 Class A common stock at $ 15 per share and raised more than $ 300 million ahead of its market debut, exceeding initial expectations of raising $ 269 million for an IPO. A few hours after trading on the Nasdaq Global Select Market under the symbol BIRD, the Allbirds share soared above 60%.
Allbirds stock was down more than 3% in early Monday afternoon before the release of its results.
In recent ratings, analysts at Stifel and Cowen maintained positive views on the brand’s potential, promoting the “Buy” and “Outperform” ratings respectively.
“Allbirds is a pioneer of sustainability, and the brand’s ethics align with consumer megatrends of conscious consumption and insecurity,” wrote Jim Duffy, analyst at Stifel. “With only 11% brand awareness in the US market, we see the brand early in its development. Additionally, compelling digital trends and the retail economics suggest a long trail for growth of 20% or more. “
On an equally positive note, Cowen analyst John Kernan said Allbirds could likely reach $ 1 billion in sales thanks to the benefits of its ESG. leadership, innovation in materials and brand power.
“The shift to store growth and omnichannel capabilities will increase brand awareness and preference,” Kernan wrote.
Meanwhile, other analysts are less confident in the brand which has become notable in recent years for its focus on using sustainably sourced materials, such as tree fiber, sugarcane and shells. crab.
For example, JP Morgan and Morgan Stanley took a more cautious approach with their initial recommendations in their hedging.
Morgan Stanley said in a note that “the path to Allbirds profitability is less clear and requires a big performance inflection,” although this is a hallmark of ESG focus. Morgan Stanley analysts also pointed out that Allbirds will need to expand its product lines and broaden its audience to achieve growth objectives.
Allbirds launched its sustainable sportswear collection in September and last month unveiled its first all-terrain shoe, the Trail Runner SWT, featuring FSC-certified natural rubber outsoles and SweetFoam sugarcane midsoles.
“In the current state of Allbirds, you could argue that it appears to be a one-product business with a narrow customer base that disproportionately skews the wealthy and the older,” wrote Morgan Stanley analysts. “This initial focus on lifestyle, the lack of style diversity in its product lines and the narrow customer base sets it apart from the world’s major footwear players.”
JPMorgan also expressed hesitation in its neutral rating for Allbirds, with a price target of $ 21.
Allbirds is one of many shoe brands and retail companies that have gone public this year. In August, sports brand On filed for an IPO – the same month as Allbirds – and made its market debut in September. Authentic Brands Group, which owns various shoe brands including Nine West, Frye, Eddie Bauer, Tretorn and many more, filed for an IPO in July, but has since delayed the process after receiving a new one. significant investment.