After coming under intense selling pressure over the last few weeks, the Bubs Australia Ltd (ASX: BUB) share price finally headed in the right direction on Wednesday.
The fledgling infant formula company's shares finished the day 7% higher at 76 cents.
What happened?
Today's gain appears to be a case of bargain hunters swooping in following its sharp decline.
Prior to today, Bubs' shares had lost over 35% of their value since peaking at $1.10 during the first week of November.
How long it stays at this level, only time will tell.
As we mentioned earlier this week, Morgans recently slapped a hold rating and 70 cents price target on its shares.
While the broker appears to believe that Bubs' is well positioned to take on a2 Milk Company Ltd (Australia) (ASX: A2M) and Bellamy's Australia Ltd (ASX: BAL) in China, it thinks its shares are a touch overvalued.
