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 and reducing our 4Q25 and 2026 projections for Betterware de Mexico after the company announced 3Q results which registered strong margin growth and weaker than expected revenue, as management focused on driving higher returns in a period of weaker Mexican consumer demand (and a strengthening Mexican peso).</li><li>Further, management remains highly focused on improving overall economic health for the company, reducing net debt and maintaining the current dividend rate.</li><li>That said, with the Mexican consumer remaining sluggish in spending on basics and household goods, management lowered 4Q25 top and EBITDA YoY growth to 1% to 5%.</li></ul>

We are reiterating our Buy rating and $22.50 price target and reducing our 4Q25 and 2026 projections for Betterware de Mexico after the company announced 3Q results which registered strong margin growth and weaker than expected revenue, as management focused on driving higher returns in a period of weaker Mexican consumer demand (and a strengthening Mexican peso).Further, management remains highly focused on improving overall economic health for the company, reducing net debt and maintaining the current dividend rate.That said, with the Mexican consumer remaining sluggish in spending on basics and household goods, management lowered 4Q25 top and EBITDA YoY growth to 1% to 5%.

BWMX: 3Q Review: Leveraging Margin Opportunities; Reiterate Buy, $22.50 PT