Baby Bunting's first quarter trading update showed sales down -2.5% year on year, slightly shy of consensus. The gorss margin was flat.

The miss could suggest a larger skew to the second half, Morgan Stanley notes, or a rebasing lower for FY24 forecasts. But there were positives.

Comparable sales rose 1% in the last nine weeks, margins were flat despite competition in car seats and prams, and inventory has been reduced.

Equal-weight and $1.88 target retained. Industry view: In Line.

Sector: Retailing.

Target price is $1.88.Current Price is $1.82. Difference: $0.06 - (brackets indicate current price is over target). If BBN meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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