Morgans reveals that its analysts have downgraded this plumbing parts company’s shares to a
reduce rating with a price target of $11.45. According to the note, the broker made the move after reducing its earnings estimates to reflect a stronger Australian dollar. In addition to this, the broker thought that its valuation was getting stretched after a strong gain over the last few months. The Reece share price was trading at $16.01 at Friday’s close.
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3 reasons why the Bubs (ASX:BUB) share price could be a buy
Tristan Harrison | January 29, 2021 7:00am |
More on:
Bubs Australia Ltd (ASX: BUB) at today’s share price.
What is Bubs?
Bubs is primarily an infant formula business that sells products derived from goat milk. It also sells organic, gross-fed cow’s milk infant formula ranges, organic baby food, cereals and toddler snacks.
The company also recently launched ‘Vita Bubs’, which is a range of infant and children’s vitamin and mineral supplements formulated with goat milk.
It also says it’s the leading producer of goat dairy products in Australia with exclusive milk supply from the largest milking goat herds in the country.
Bubs Australia Ltd(ASX: BUB) share price is surging notably higher on Thursday.
At the time of writing, the infant formula company’s shares are up 10% to 67 cents.
Why is the Bubs share price surging higher?
The Bubs share price is on the move today following the release of its second quarter update.
For the three months ended 31 December, Bubs reported a 12% decline in gross revenue to $12.8 million. This was despite the company reporting a 34% increase in China cross border ecommerce (CBEC) sales and strong sales growth in Australian supermarkets compared to the same period last year.
In respect to supermarket sales, management notes that Bubs is the fastest growing infant formula manufacturer across