Two weeks ago Yahoo Finance name Bubs as one of the three penny stocks to watch this year.
This is no small endorsement, especially in a market where investor sentiment around small caps has been mixed.
It suggests there’s something fundamentally appealing here that could trigger a re-rating if the company continues on its recovery path.
What stands out most is, they mentioned Bubs is trading well below its estimated fair value. That’s not just analyst fluff; there’s a clear disconnect between price and fundamentals.
With most valuations coming in around 17c to 20c+, and the stock trading notably under that, it creates a compelling value play.
They mentioned it’s rare to see a business with improving earnings, cash strength, and strong short-term liquidity sitting at a discount like this.
The market often lags when it comes to re-pricing smaller companies with renewed momentum, but when it does, the moves can be sharp.
They mentioned If Bubs delivers on its FY25 revenue guidance and hits that forecasted 86% earnings growth, there’s real potential for a rerate, especially if investor appetite for growth picks up in the second half of the year.
BUB Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
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