Baby Bunting has reiterated FY20 guidance for operating earnings (EBITDA) of $34-37m and net profit of $20-22m. Morgan Stanley notes the expected gross margin of 36.6% is ahead of expectations.
Overweight maintained. Target is $3.50. Industry view is In-line.
Target price is $3.50.Current Price is $3.63. Difference: ($0.13) – (brackets indicate current price is over target). If BBN meets the Morgan Stanley target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).