Core Viewpoint - Zacks Investment Research has initiated coverage of Better Choice Company, Inc. (BTTR) with a Neutral recommendation, indicating a balanced outlook on the company's performance in the competitive pet care industry [1] Company Performance - Better Choice achieved its first profitable quarter in over four years in Q3 2024, reporting adjusted EBITDA of over 4.2 million, and the stock has underperformed compared to peers and the broader market, trading at a significant discount relative to industry averages [3][5] - The company faces challenges due to its reliance on Asia-Pacific markets, which exposes it to regulatory, economic, and competitive risks [2] - Elevated competition in the premium pet food sector, dominated by major players like Mars and Nestle, necessitates continued investment in branding and innovation [8] Growth Opportunities - The company's growth is heavily driven by international markets, particularly in the Asia-Pacific region, where pet ownership is surging, especially among younger demographics seeking premium products [4] - Better Choice's acquisition of SRx Health Solutions enhances its revenue diversification strategy and aligns with its plans to enter the veterinary pharmaceuticals market under the "Better Pet Rx" initiative [9] Operational Efficiencies - Operational efficiencies have been noted, including a 48% reduction in inventory levels and a 97% supply chain fill rate, which support the company's recent profitability and position it for sustained growth into 2025 [7]
Zacks Initiates Coverage of Better Choice With Neutral Recommendation