• Shares of Allbirds(NASDAQ:BIRD)moved higher in pre-market trading Thursday after Morgan Stanley upgraded the stock to Overweight from EqualWeight while lowering its price target to $17 from $23.
• Morgan Stanley said that despite the stock retreating over 50% from its post-IPO highs and falling below its $15 IPO price, it still regards the sustainable footwear company as “one of the few plus double-digit growth stories in retail.”
• “While valuation has kept us Equal Weight, the stock pullback yields an attractive entry point, particularly as we see an opportunity for BIRD to accelerate revenue growth in 2022,” wrote Morgan Stanley analyst Kimberly Greenberger in a note.
• The bank said the lowered price target is based on scaled back long-term DCF assumptions.
• Morgan Stanley added that it sees 25% upside from the stock’s current price levels.
• On Wednesday, Allbirds'stock dropped13% to close at $13.57, just shy of the stock's all-time low of $12.96 hit on Dec. 13.