We are reiterating our Buy rating, $30 price target and projections after attending the JAFRA National Convention and meeting with Betterware management. We remain impressed with the ability of the JAFRA model to empower their selling base to be “Unstoppable” and believe even, as JAFRA celebrates its 70th anniversary, there remains material growth opportunities in both the United States and Mexico and, eventually, South America. Further, we were highly impressed with the continued focus at JAFRA on compelling products that utilize science (and strong marketing) to add material value for the buyers of JAFRA products. As such, we are confident in the continuing potential for this core brand pillar of Betterware, and remain enthusiastic, post the Tupperware LatAm acquisition, for the company to continue to materially drive top and bottom line upside. With BWMX trading at under 6X our 2027 EPS and offering a dividend yield of almost 10%, we believe investors have continued to underestimate the power of the company’s three brands to drive material top line and EBITDA expansion and reiterate our Buy rating and $30 price target.
