We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the September catalog. September's offerings reflect a continued shift to higher priced items, with the average price the highest we have recorded; further the level of discounting continues to materially shrink from peak September 2023 levels. With SKU levels normalizing, we believe the overall Betterware message is of management focusing on driving stronger overall returns and revenue. If the 2Q results, which showed signs of stabilization in the distribution network hold (or further improve), the higher catalog pricing and lower USD will result in materially improved operating performance. As such, we reiterate our Buy rating and $22.50 price target for BWMX.
