2237 GMT - Bubs Australia's better-than-expected second-quarter margins aren't enough to turn Citi bullish on the infant-formula maker, but do offer analyst James Wang some encouragement about its outlook. Wang writes in a note to clients that Bubs' 48% gross profit margin was well ahead of his forecast of 40%. The company's expectation of A$2.9 million in first-half Ebitda compares with his previous forecast of a loss. With sales momentum improving, Wang brings forward the timing of what he says will be an annual earnings recovery to the current fiscal year. Citi lifts its target price 7.7% to A$0.14 and stays neutral on the stock, which is at A$0.12 ahead of the open. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
January 22, 2025 17:37 ET (22:37 GMT)
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