Baby Bunting Group's FY21 results were in-line, and Morgan Stanley upgrades earnings per share estimates 2-3% through to FY23.

Morgan Stanley notes investors were spooked by a -6.4% same store sales growth in the first six weeks of FY22 due to covid impacts, but the broker expects a likely positive turn for the company. The broker increases same store sales growth assumption to 5% from 3% for FY21. 

Baby Bunting Group has not provided FY22 guidance. The Overweight rating is retained and the target price increases to $6.90 from $6.30. Industry view: In-line.

Sector: Retailing.

Target price is $6.90.Current Price is $5.71. Difference: $1.19 - (brackets indicate current price is over target). If BBN meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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