RE: H&B8 Jan 2020 10:35
Goetz note maintains 97p price target. Talks of H&B as a global player.
"Clinical validation differentiates SlimBiome in the heavily fragmented dietary weight
management market. We expect revenues from SlimBiome to reach approximately £1m
in FY2020E, which we believe is conservative, and >£11m by 2024E, driven by growing
sales of existing deals and new deals. Critically, products sold under the agreement are
sold under SlimBiome branding which, in the fiercely competitive retail market, helps
to raise the profile of SlimBiome, reinforcing a positive association for consumers, and
provides the potential to grow brand loyalty. A strong brand will also be critical for further
geographic expansion by OPTI into markets such as China where western brands are high
in demand and copycats are likely to flood the low end of the market."