Over the last two months the Bellamy's Australia Ltd (ASX: BAL) share price has been amongst the worst performers on the market with a decline of approximately 17%.
Does this make the infant formula company's shares a buy?
While I still see more value in A2 Milk Company Ltd (ASX: A2M) shares, I am starting to believe that Bellamy's shares are trading at an attractive level for a buy and hold investment.
And it doesn't look like I'm the only one that thinks this way at the moment.
According to a change in substantial holding notice released this morning, investment bank Morgan Stanley and its subsidiaries have increased their stake in the company from 5.4% to 6.4%.
Furthermore, a note out of rival investment bank Citi in October revealed that its analysts have upgraded Bellamy's all the way from a sell to a buy rating with a massive $14.40 price target.
The broker made the upgrade after being impressed with its quicker than anticipated turnaround. It does, however, have a high risk rating attached to the recommendation.
But considering this price target implies a potential return of over 36%, the risk/reward on offer here certainly does appear compelling.
All in all, I feel this could make Bellamy's worth considering as an investment in 2018 alongside industry peer a2 Milk.
