Motley Fool Australia

Why this top broker still backs Bellamy’s Australia Ltd (ASX:BAL)

Baby formula and bottle

Citibank remains upbeat on the growth prospects of Bellamy’s Australia Ltd (ASX: BAL) despite a short-term earnings hit, according to a report in The Australian.

Bellamy’s share price slid about 18% last week after a broker note out of Goldman Sachs slashed its price target off the back of CFDA accreditation issues that could impact Bellamy’s sales volumes in China.

But according to The Australian, Citibank believes “the long-term drivers of Chinese consumers preferring premium imported formula remain in place”.

According to The Sydney Morning Herald, the US yesterday opposed a World Health Assembly resolution to encourage breastfeeding – bringing the baby formula vs breastfeeding debate to the forefront of the minds of the Western world.

Other ASX companies such as A2 Milk Company Ltd (ASX: A2M), BUBS Australia Ltd (ASX: BUB), Jatenergy Ltd (ASX: JAT) and Wattle Health Australia Ltd (ASX: WHA) have their cards stacked on the continued global reliance of baby formula for infant nutrition, with A2 having done especially well in the Chinese market beside Bellamy’s.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Related Articles…