BBB Foods Inc (TBBB) PT Raised to $48 at Scotiabank

Scotiabank analyst Hector Maya raised the price target on BBB Foods Inc (NYSE: TBBB) to $48.00 (from $37.00) while maintaining a Sector Outperform rating.

The analyst commented: "We believe the market is underestimating the compounding value of BBB Foods’ accelerating store expansion. The company’s decentralized “hub-and-spoke” logistics model sustains a self-reinforcing flywheel: more stores enable more distribution centers, leading to broader geographic reach and customer awareness, which breeds more stores. We estimate BBB Foods will double its current footprint by 2030, and triple it by 2034, and when the share of mature stores rises, consolidated margins should trend meaningfully higher.

This is not just a growth story, it is a margin expansion story hiding in plain sight. Today, 45% of stores are less than three years old and diluting margins. As scale efficiencies add up and as growth eventually stabilizes at ~900 to 1,000 openings/year, which we estimate should happen by 2035, the mix shift toward mature, higher-margin stores should drive a structural improvement in profitability that we don't think is in consensus numbers yet. We raise our TP to US$48, the highest on the street, and reiterate Buy. For Q1/26, we expect ~33% revenue growth, ~16% SSS, and 120+ store openings."

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