At time of writing, the share price of Bubs Australia Ltd [ASX:BUB] is up 9.2%, trading at 95 cents. It’s been a remarkable rise for the Bubs share price over the last month. After hitting a 52-week low of 40 cents on 13 March
The big news today is that a Chinese company has lobbed a lucrative takeover bid at Bellamy’s. We look at the implications that the Bellamy’s takeover has for other ASX-listed infant formula companies...
To put it bluntly, Bellamy’s has served up a grim result. Profit has nearly halved from $42.8 million to $21.7 million. A result that has come on the back of lower sales and higher costs.
The share price of A2 Milk Company Ltd [ASX:A2M] rose 8% today, following an upgraded rating by UBS Wealth Management. They set a price target of $16.68.
Bubs Australia Ltd [ASX:BUB] is today the beneficiary of positive investor sentiment after the announcement of a strategic channel partnership between Bubs and Kidswant, a prominent baby retail chain in China.
At time of writing, Bellamy’s share price is trading up 6.83%, at a price of $10.63.This time last week, Bellamy’s shares were down to $7.80 at one point, their lowest price since October 2017.
Bellamy’s share price has been on the decline since it hit its peak of $23.07 back in March of last year. The past 12 months has seen the share price drop by almost 55% — prices haven’t been this low since October of 2017.
The major infant food and formula producers on the ASX have fallen again this week, with a2 Milk Company share price, as well as Bellamy’s Australia and Clover Corporation all facing increased market pressure.
It seems that Morgan Stanley’s belief in the company and its potential to turn around (stated in January) is still helping Bellamy’s growth, meaning we could see further gains to Bellamy’s share price in the near future.
Bellamy’s share price has risen by 6.16% at the time of writing, following a strong financial performance in 2018. Near-to-medium-term outlook remains positive as their three-year growth strategy takes effect.