Citi retains its Sell rating on Bubs Australia with a target of $0.51.
The broker believes a2 Milk is in for a challenging second half given the resurgence of domestic brands, uncertainties surrounding market access and the ongoing weakness in the daigou market.
The broker remains concerned about the structural pressures Australian infant formula market brands are facing.
Sector: Food, Beverage & Tobacco.
Target price is $0.51.Current Price is $0.66. Difference: ($0.15) – (brackets indicate current price is over target). If BUB meets the Citi target it will return approximately -29% (excluding dividends, fees and charges – negative figures indicate an expected loss).
