The share price has appreciated 41% year-to-date, believe it or not, and Citi analysts counter it is time for a pause, hence why the downgrade to Neutral from Buy. The broker remains a supporter of the company and the chosen strategy.
Irrespective, Citi analysts acknowledge concerns around potential further delays in Bellamy’s SAMR registration remain (or are resurfacing, depending on one’s view) while the new product formula essentially still needs to prove itself.
Target price increases 8% to $10.50 as Citi has now incorporated the new formula in its model. The analysts speculate China might be favouring local products, which increases the odds Bellamy’s SAMR licensing is facing further delays.
Sector: Food, Beverage & Tobacco.
Target price is $10.50.Current Price is $10.13. Difference: $0.37 – (brackets indicate current price is over target). If BAL meets the Citi target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
