Ann: FY20 Q4 Activities Report and Appendix 4C Cashflow Statement, page-100

Citi Research has trimmed its share price target on $545 million goat-milk-based infant formula producer Bubs from $1.10 to $1 with a neutral rating.

"Bubs continues to be a promising brand in a fast-growing category with the right strategic partners, foundations for success, and positive catalysts on the horizon. However, we downgrade to Neutral given current pricing does not adequately reflect the risk that the 4Q20 slowdown could persist into 1Q21," the broker wrote.

It warned infant formula market conditions are challenging due to the decline in the daigou export channel to China and competitive headwinds.

For financial 2021 Citi has pencilled in a net loss of $0.2 million on sales of $81.6 million.

Bell Potter also has a $1 per share valuation and said the shares at 97.5 cents are trading on 7.2 times the broker's estimates of financial 2021 revenues, which is within its targeted valuation range of six to eight times.

"BUB is still in the early stage of its product life cycle, where revenue is predominantly driven by an expansion in the distribution footprint, product uptake and category expansion," Bell Potter wrote.

"In our view the revenue and earnings ceiling for BUB’s is high and there are continued signs of positive momentum in the infant business (2H20 IMF revenues up +65% YOY) and further category expansion up the value curve (vitamins and 50+ nutritionals)."

For financial 2021 Bell Potter has pencilled in a net loss of $2.3 million on sales of $75.2 million. After a weaker-than-expected final quarter of financial 2020 Bell Potter downgraded its rating on the stock from buy to hold.
Q1 Doesnt look good as coronavirus is not going anywhere till next year .Share price will drop significantly.