Betterware de Mexico Q2 Sales To Decline On Cut In Consumer Spending, Says Analyst

Telsey Advisory Group analyst Cristina Fernandez maintained a Moderate Risk rating on Betterware de Mexico SAB De C.V. BWMX and lowered the price target to $18 from $22.
The analyst expects core Betterware sales to decline 25% Y/Y in Q2 as its lower-end consumer returns to normal activities and cuts discretionary spending in the face of low consumer confidence and high inflation.
According to INEGI, consumer confidence in Mexico remains below 50 and Consumer Price Inflation (CPI) has accelerated year-to-date through June to 7.5% from 5.6% in 2021.
However, Fernandez feels that Betterware’s business model remains attractive long-term and should return to growth in 2023 as the company is accelerating innovation, increasing incentives for associates and distributors, and changing its marketing strategies.
Price Action: BWMX shares are trading lower by 0.20% at $9.99 on the last check Monday.

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