Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity research on small cap consumer names.

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

Betterware de Mexico Sab de CV / Equity Bottom-Up

<ul><li>We are reiterating our Buy rating and $22.50 price target for Betterware de Mexico, slightly tweaking our 3Q25 projection and updating our USD projections for actual 3Q FX rates with the company announcing results after the close Thursday.</li><li>We believe Betterware remains highly focused on overall returns for the namesake division, while JAFRA remains in a full market share expansion mode.</li><li>As such, we believe management will remain upbeat on prospects for 2025 and beyond and the potential for gains from higher margins (and lower overall inventory levels) to fund further growth (including new country expansion) and continue to reduce overall debt levels.</li></ul>

We are reiterating our Buy rating and $22.50 price target for Betterware de Mexico, slightly tweaking our 3Q25 projection and updating our USD projections for actual 3Q FX rates with the company announcing results after the close Thursday.We believe Betterware remains highly focused on overall returns for the namesake division, while JAFRA remains in a full market share expansion mode.As such, we believe management will remain upbeat on prospects for 2025 and beyond and the potential for gains from higher margins (and lower overall inventory levels) to fund further growth (including new country expansion) and continue to reduce overall debt levels.

BWMX: 3Q Preview: Focused on Higher Returns; Reiterate Buy, $22.50 PT