American Eagle’s retail rally led by a short squeeze and viral ad campaign may inspire a similar surge for Birkenstock, who has 21% of its float sold short. Birkenstock, with a $9.3 billion market cap, reported revenue of €574.33 million in Q2 with earnings up 46%. Analysts expect continued growth trends with revenue and earnings rates significantly higher than sector medians. Birkenstock’s Q3 earnings are anticipated to be $0.70 per share on revenue of $736.56 million, showing company’s potential for sustainable growth. The company is making substantial international expansion strides, especially in Asia, with a focus on direct-to-consumer sales to drive continued margin expansion and growth. Analysts have given BIRK stock a consensus “Strong Buy” rating with a mean target price of $68.88, indicating a potential 38% upside.

Read more at Yahoo Finance: Will This Stock Be the Next Retail Sector Short Squeeze After American Eagle?