Shares of Birkenstock could be set up for gains even with President Donald Trump’s tariffs, according to Bank of America. On Friday, analyst Lorraine Hutchinson reiterated her buy rating on the footwear stock and raised her price target by $3 to $73, which implies more than 26% upside from Thursday’s closing price. This comes as U.S.-listed shares of the German sandal and shoe maker have soared nearly 10% this week. The company’s quarterly results on Thursday beat on the top and bottom lines for the fiscal second quarter, though it did reveal that it plans to increase prices globally to offset the impact from the Trump administration’s 10% tariff rate on imports coming into the U.S. Earlier this week, Commerce Secretary Howard Lutnick reaffirmed Trump’s prior comments by saying the 10% baseline tariffs will likely ” be in place for the foreseeable future .” BIRK 5D mountain BIRK, 5-day Still, Hutchinson believes Birkenstock is positioned well to face any tariff impact, saying the company has “no Asia manufacturing and ample pricing power from intentional scarcity.” “Birkenstock gave its complete sourcing mix including 95% from Germany and 100% from Europe, with 96% of raw materials sourced from Europe,” the analyst wrote in a Friday note to clients. “A full offset of the tariff impacts would only require a LSD [low single-digit] price increase globally, which is consistent with historical levels of pricing actions.” The stock has already had a positive year, rising nearly 2% year to date. Shares have also gained more than 26% over the past six months, more than 33 times the gains of the S & P 500 during that timeframe.
