We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the January catalog. The catalog has continued to focus on driving overall newness, with SKU counts remaining near record highs. with a combination of new products and returning favorites. Further, while discounting remains elevated, overall pricing is also higher, as the company continues to respond to a weaker peso and a consumer looking for bargains. As such, we believe Betterware continues to focus on maintaining margin integrity in the face of multiple uncertainties in the international supply chain. Like many investors, we continue to focus on the potential for United States tariffs to hurt the Mexican consumer; that said, we believe BWMX, trading with a dividend yield of over 11% remains oversold, and we reiterate our Buy rating and $22.50 price target.
