Morgan Stanley analyst James Bales maintained a Buy rating on Baby Bunting Group Ltd. today and set a price target of A$3.60.
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James Bales has given his Buy rating due to a combination of factors that highlight Baby Bunting Group Ltd.’s strong performance and growth potential. The company has shown significant improvement in comparable store sales growth, achieving a 4.2% increase in FY25, with a notable 6.2% growth in the second half. This growth was supported by enhancements in transaction volumes and basket sizes across the network.
Additionally, Baby Bunting has surpassed its gross margin targets, reaching 40.2% for FY25, which is above the 40% target, and even higher at 40.5% in the second half of the year. The company’s plans to expand its store network by adding 80 new locations, alongside successful store refurbishments, are expected to drive further growth. These factors, combined with the potential for a stock re-rating and a revised price target of A$3.60, underpin the Buy recommendation.
In another report released on September 16, Citi also maintained a Buy rating on the stock with a A$3.04 price target.
Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BBN in relation to earlier this year.