What are MM’s updated thoughts on Baby Bunting (BBN)?
Hello, In the last opinion for BBN, MM was neutral to bearish at $3.10 price. With price now $2.5 with no further news other than a Director on market purchase, what is MMs view now?
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Answer
Hi Nilang,
No change here, we still think this is too hard to catch.
The space they operate in is very competitive and falling margins is something of concern as we head into 2023, while they are still not cheap for a retailer trading on ~14x consensus earnings when we could by JB Hi-Fi (JVBH) or Super Retail (SUL) on 11x or Nick Scali (NCK) on 9.5x who have just reported very well. Technically the stock is at a key support level and while a bounce is possible, it is not one for us at this stage.
