The Blackmores Limited (ASX: BKL) share price was on form again on Monday and continued its ascent.
The health supplements company's shares climbed 2.5% to $87.32 at one stage to hit a 52-week high.
When the Blackmores share price hit that level, it meant it was up 31% over the last 12 months. However, it is worth noting that it is still down around 60% from its record high.
Image source: Getty Images
Why is the Blackmores share price at a 52-week high?
Investors have been buying Blackmores shares thanks to a major improvement in its performance after a couple of forgettable years.
For the six months ended 31 December, the company reported revenue of $302.6 million. This was a 3% increase on the prior corresponding period.
Management advised that this was driven by a 13% increase in International revenue and a 25% lift in China revenue, which managed to offset a 10% decline in ANZ revenue to $148 million.
Positively, thanks to margin expansion, Blackmores' profit grew at the quicker rate of 8% to $19.4 million.
This improvement in its performance allowed the company to reinstate its dividend. Blackmores declared a fully franked interim dividend of 29 cents per share.
What's next?
Management was cautious but positive on its outlook. While the company is expecting growth in Asia, it suspects that ANZ revenue could remain soft.
Particularly given during the weakness in the daigou channel because of COVID-19 border closures and lower foot traffic.
Can the Blackmores share price go higher?
According to a recent note out of Morgans, its analysts believe the Blackmores share price is fully valued now.
The broker has put a hold rating and $86.00 price target on the company's shares, which is a touch lower than where it trades today.
While its analysts expect its efficiency program to deliver strong results for the company, it isn't enough for a more positive rating. At 35x estimated FY 2022 earnings, it appears to believe the upside is limited in the near term.
