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, $22.50 price target and slightly reducing our projections after Betterware reported 3Q results above Street expectations, reiterated 2024 guidance despite materially negative Foreign Exchange ("FX") issues and higher than expected freight costs and announced another quarterly dividend.</li><li>Further, initial results from the crucial 4Q quarter have provided Betterware management with the confidence to remain upbeat and aggressively add new SKUs, focusing on winning categories and driving higher returns.</li><li>With key expansion opportunities in terms of categories (i.e. skin care and hair coloring at JAFRA and wellness at Betterware) and geographies (United States and Peru expansion for Betterware), we believe somewhat jaded investors are missing a material winner in the somewhat moribund direct selling category, and we reiterate our Buy rating and $22.50 price target for BWMX.</li></ul>

We are reiterating our Buy rating, $22.50 price target and slightly reducing our projections after Betterware reported 3Q results above Street expectations, reiterated 2024 guidance despite materially negative Foreign Exchange ("FX") issues and higher than expected freight costs and announced another quarterly dividend.Further, initial results from the crucial 4Q quarter have provided Betterware management with the confidence to remain upbeat and aggressively add new SKUs, focusing on winning categories and driving higher returns.With key expansion opportunities in terms of categories (i.e. skin care and hair coloring at JAFRA and wellness at Betterware) and geographies (United States and Peru expansion for Betterware), we believe somewhat jaded investors are missing a material winner in the somewhat moribund direct selling category, and we reiterate our Buy rating and $22.50 price target for BWMX.

BWMX: 3분기 리뷰: 직접 판매로 성공하기; 매수 의견 유지, PT당 $22.50