Citi concerned about Bubs Australia on poor China performance, cuts PT

Bubs Australia

05/06/2023 05:26

** Analysts at Citigroup cut price target on Bubs Australia
Ltd  BUB.AX  to A$0.19 from A$0.32, retains "neutral" rating
    ** Cuts FY23 NPAT estimate by A$3 mln ($1.98 mln) to a net
loss of A$40 mln reflecting weaker-than-expected 3Q23 update in
China and the United States
    ** Brokerage says "increasingly concerned on the
implications for channel profitability and subsequently consumer
offtake", after weak sales, particularly in China
    ** BUB on Friday reported 3Q23 China revenue of A$2.6 mln,
down 57% from a year ago, with FY23 China revenue seen between
A$13.5 mln and A$13.8 mln, significantly below A$53.6 mln logged
in FY22
    ** Brokerage awaits strategic review and evidence of
improved sales momentum to turn more positive on BUB
    ** BUB stock trading flat as at 0351 GMT after gaining as
much as 2.8% earlier in the day
    ** BUB down 40% this year, as of last close, vs a 1.5%
increase in the ASX All Ordinaries index  .AORD  


($1 = 1.5135 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))