Bubs Australia (BUB) – 2025 Turnaround Story
February 10, 2025
Bubs Australia produces various infant nutrition and wellbeing products in Australia, China, the United States, and internationally. It also provides canning services for nutritional dairy products and holds IP and trademarks. The company was incorporated in 1993 and is based in Dandenong South.
After eight years, several false starts including a costly one into China, a sacked founder, a failed board spill, and a staggering $316 million in equity injections, is it safe to mention the name Bubs in investment circles? We are of the view that it is. For any investor that has previously written-off the company, we believe it is time to revisit Bubs get exposure to what we forecast to be an outstanding 2025 turnaround story. Bubs is currently displaying all of the essential ingredients for a successful turnaround, i.e. anew and competent management team that has had enough time to steady the ship, a good product with sufficient gross profit (GP) margins, and a multi-year double-digit growth profile. Ord Minnett has initiated coverage of Bubs with a Buy recommendation and a target price of $0.20.
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