Bell Potter hikes PT on Bubs Australia post new strategy to manage expenses

Bubs Australia

07/07/2023 01:18

** Analysts at Bell Potter slightly lift Price Target on
Bubs Australia  BUB.AX  to A$0.225 per share from A$0.2 per
share earlier
    ** The embattled infant formula maker on Thursday laid down
outcomes of a strategic review and new five-point plan to reduce
expenses and cash burn
    ** Brokerage says that co's progress in the U.S. remains
encouraging against distressed operations in China, keeps risk
rating as 'speculative'
    ** Bell Potter adds that the challenge for co will be to
manage excess inventory positions levels of products held by
partners in China
    ** BUB plunged 9% at open on Thursday but later gave up
losses to end the day 2.2% lower
    ** Tony Sycamore, market analyst at IG Australia, said, "The
new plan has potential to stop rot in shareholder value but the
devil is in the detail and how well Bubs can deliver
    ** Stock has fallen 26.7% this year as of last close 

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))