0504 GMT - Baby Bunting's weak trading update doesn't seem to have unsettled the Australian retailer's bulls at Morgan Stanley. The investment bank's analysts tell clients in a note that they think that headwinds facing the ASX-listed company are temporary, and that they still expect growth to accelerate in its next fiscal year. The midpoint of Baby Bunting's revised fiscal 2026 sales guidance range is about 5% lower than previous forecasts at MS, but the analysts say they are unsurprised by the retailer's update. They point out that the earnings downgrade is largely driven by softness at the stores that Baby Bunting has yet to refurbish. MS has a last-published overweight rating on the stock and a target price of 3.60 Australian dollars. Shares are down 3.9% at A$1.4125. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

June 25, 2026 01:04 ET (05:04 GMT)

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