Bank of America Securities analyst Robert Ford has maintained their bullish stance on TBBB stock, giving a Buy rating on April 9.
Robert Ford’s rating is based on a combination of factors that highlight the potential for growth and market expansion of BBB Foods, Inc. Despite reporting a net loss due to non-recurring charges and higher expenses, the company has demonstrated strong revenue growth, with sales increasing by 32.7%. The expansion of gross margins and a significant rise in EBITDA, excluding certain adjustments, indicate improved operational efficiency and better supplier terms.
Furthermore, BBB Foods, Inc. shows promising signs in market penetration and product diversification. The increase in same-store sales and private label penetration, along with successful pilot tests in new product categories like fresh meat, suggest potential for further market share gains. The company’s strategic expansion plans, including a significant number of new store openings, align with anticipated consumer behavior shifts towards smaller, more frequent purchases, which could enhance their competitive position. These factors collectively support the Buy rating, projecting a positive outlook for the company’s stock performance.
In another report released on April 9, Scotiabank also maintained a Buy rating on the stock with a $36.00 price target.
TBBB’s price has also changed moderately for the past six months – from $31.970 to $26.650, which is a -16.64% drop .