Baby Bunting Group (BBN.AX): Topline takes a nap, margins stay awake

研报英文原文证据摘录

Baby Bunting Group (BBN.AX): Topline takes a nap, margins stay awake

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24 Jun 2026 02:45:26 ET │ 13 pages

Baby Bunting Group (BBN.AX)

Topline takes a nap, margins stay awake

CITI'S TAKE

We reiterate our Buy-rating on Bunting given in our view it is still early days

in this stock’s story, given i) there is a long tail of stores to be refurbished

(>50% of the existing store network), which should drive strong comp Buy

momentum for the next ~4 years, ii) ongoing large format store rollout (76 Price (24 Jun 26 13:13) A$1.44

stores in 1H26 with a target of 120, ex. small formats), noting 35% of

Australia’s population does not have a Baby Bunting store within a one-hour Target price A$2.70↓

drive, and iii) further potential upside from the media business. from A$3.30

Expected share price return 87.5%

Earnings changes — We revise our FY26/27/28 NPAT by -8%/-8%/+8%. FY26 is Expected dividend yield 0.0%trimmed in-line with guidance. We cut FY27 on weaker sales and higher costs, whilst

FY28 is higher due to modified long term D&A. New Target Price is $2.70 (-18%) due Expected total return 87.5%

to earnings changes, removing the premium to ASX300 in our PE rel valuation on the Market Cap A$195M

back of headwinds facing retail, and reducing the premium to Australian specialty

US$137Mretailers in our SOTP valuation as the category appears to be less defensive than

previously thought.

Our thoughts on the trading update here  Baby Bunting Group (BBN.AX) – When

relatively less discretionary retailers are seeing a slowdown, imagine the challenges Price Performance

facing more discretionary retailers (RIC: BBN.AX, BB: BBN AU)

Sam Teeger AC

+61-2-8225-4319BBN.AU revisions (Y/E Jun) 2024A 2025A 2026E 2027E 2028E

sam.teeger@citi.com

Sales (A$m) 498.4 521.9 553.9 581.1 624.5