Citi cuts profit estimates for Bubs Australia, lowers PT

Bubs Australia

29/10/2023 19:44

** Citi slashes FY24-FY26 net profit after tax for Bubs
Australia  BUB.AX  by A$7.3 million ($4.62 million) to A$1
million on account of higher costs, slashes its price target
    ** The dairy firm reported a 3.4% rise in group gross
revenue for Q1 to A$24.3 mln  urn:newsml:reuters.com:*:nL4N3BT4FD
    ** Citi says co's recent quarterly results have revealed
that its two key growth markets of the U.S. and China have been
behind expectations, specifically latter 
    ** Broker remains cautious of co's China infant formula
prospects due to inventory issues, change in distributors and
broader concerns around the birth rate
    ** Broker sets "Neutral" rating on the stock, cuts its price
target to A$0.20 from A$0.21 per share 
    ** Stock has fallen 45% this year, as of last close





($1 = 1.5793 Australian dollars)

 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))