We are reiterating our Buy rating and $22.50 price target and reducing our 4Q25 and 2026 projections for Betterware de Mexico after the company announced 3Q results which registered strong margin growth and weaker than expected revenue, as management focused on driving higher returns in a period of weaker Mexican consumer demand (and a strengthening Mexican peso). Further, management remains highly focused on improving overall economic health for the company, reducing net debt and maintaining the current dividend rate. That said, with the Mexican consumer remaining sluggish in spending on basics and household goods, management lowered 4Q25 top and EBITDA YoY growth to 1% to 5%. With a P/E of 6.6X and a secure dividend yield of 8.8%, we still believe the risk/reward in the name remains impressive, and we reiterate our Buy rating and $22.50 price target.
