In morning trade the Blackmores Limited (ASX: BKL) share price is having a strong finish to the week and is higher by 3% to $141.92.
This means that the shares of the leading health supplements company have gained over 60% in just three months.
Why are its shares higher today?
Although there was a mixed response from the market to its quarterly results release yesterday, a couple of leading brokers were impressed with what they saw.
According to a note out of Credit Suisse, the broker has upgraded Blackmores from a neutral rating to outperform.
Furthermore, its analysts have lifted the price target on its shares all the way from a lowly $95 to $150.
Credit Suisse has taken this action following the strong demand for Blackmores' products from the China market. Sales into China grew an impressive 28% during the quarter.
Credit Suisse wasn't the only broker that lifted its price target following the result. According to a note out of Ord Minnett, it has retained its accumulate rating and also raised its price target to $150.
Analysts at the brokerage firm appear to have been impressed with the improvements in Blackmores' margins.
Thanks largely to the implementation of a global approach to pricing, the company's margins expanded significantly and led to net profit growth of 28%, compared to sales growth of 9% during the quarter.
Should you invest?
I have been impressed with Blackmores' recovery and continue to believe that it would be a good buy and hold investment option.
As I said yesterday, I would suggest investors attempt to grab hold of shares on any share price weakness.
