Analysts have raised their price target for Baby Bunting Group from $2.74 to $3.10, citing modest improvements in projected revenue growth and a slightly lower discount rate as key factors supporting the updated valuation.
What's in the News
- Removed from the S&P Global BMI Index, reflecting changes in index eligibility. (Key Developments)
- Issued new earnings guidance for 2026: the company expects comparable store sales growth of 1.5% to 3% in the first half and 6% to 8% in the second half, with overall annual growth projected between 4% and 6%. (Key Developments)
- Plans to refurbish 10 to 12 "Store of the Future" locations in fiscal 2026, with 5 to 6 refurbishments scheduled for the first half of the year. Each refurbishment is estimated to take 10 to 12 weeks. (Key Developments)
- Announced the opening of 5 new large format stores and up to 5 or 6 small format pilot stores across 2026, subject to pilot outcomes. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has increased from A$2.74 to A$3.10, reflecting a modest upward revision in fair value estimates.
- Discount Rate has decreased slightly from 8.63% to 8.57%, indicating a marginally lower perceived risk in the updated assessment.
- Revenue Growth projection has risen slightly, from 8.60% to 8.69%.
- Net Profit Margin forecast has edged down from 3.98% to 3.94%.
- Future P/E multiple has increased from 17.7x to 20.1x.
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