James Bales, an analyst from Morgan Stanley, maintained the Buy rating on Baby Bunting Group Ltd.. The associated price target is A$3.00.
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James Bales has given his Buy rating due to a combination of factors that highlight the promising outlook for Baby Bunting Group Ltd. The company delivered a strong financial performance in FY25, with net profit after tax reaching the upper end of guidance and a notable improvement in gross margin. Looking ahead, the guidance for FY26 suggests continued growth in comparable sales and further expansion in gross margin, which exceeds market expectations.
Additionally, Baby Bunting’s strategic initiatives, such as the refurbishment program, have shown impressive returns, indicating potential for significant earnings growth. The company is also poised to expand its store footprint, aiming to double the number of stores, which underscores its growth potential. Despite being previously undervalued, BBN’s strong execution and leadership in its category make it an attractive investment, prompting a price target increase and a Buy recommendation from James Bales.
In another report released today, Citi also maintained a Buy rating on the stock with a A$2.41 price target.