Citi upbeat on Bubs Australia after HY profit swing, ups PT

Bubs Australia

22/01/2025 22:29

** Citi finds improved sales momentum and positive operating
cash flow in Bubs Australia's  BUB.AX  trading update
    ** Brokerage lifts price target to A$0.14 from A$0.13,
maintains "neutral/high risk" rating
    ** Infant formula maker reported 1H25 EBITDA of A$2.9 mln
($1.82 mln) vs EBITDA loss of A$6.8 mln in the same period last
year
    ** Citi sees co's FY25 rev guidance of A$102 mln to be
achievable
    ** Brokerage, however, flags uncertainty around U.S. FDA
approval and sustained positive cash flow as risks
    ** Stock up 20% so far this year as of last close

($1 = 1.5946 Australian dollars)

 (Reporting by Nikita Maria Jino in Bengaluru)
 ((Nikita.Jino@thomsonreuters.com))