First half net profit was up 43.5%, although less than Macquarie estimated. The broker believes Baby Bunting is one of the few retailers that can grow earnings sustainably in FY22.
Macquarie assesses the business has been a material beneficiary of the pandemic at the earnings line relative to the broader retail sector.
With an additional store target in New Zealand of more than 10, the business is now more than halfway through its store roll-out. Outperform maintained. Target is raised to $5.80 from $5.30.
Sector: Retailing.
Target price is $5.80.Current Price is $5.25. Difference: $0.55 – (brackets indicate current price is over target). If BBN meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
