Is the Blackmores (ASX:BKL) share price in the buy zone?

The Blackmores Limited (ASX: BKL) share price was out of form on Thursday.

The health supplements company's shares dropped 4.5% to $80.60.

Why did the Blackmores share price tumble lower?

Investors were selling the company's shares yesterday following the release of its shareholder update.

While no sales or profit data was provided, the update did reveal that trading conditions remain tough.

This is due to pressures in the daigou channel because of COVID-19, a milder cold and flu season, and a shift in shopping trends.

Is this a buying opportunity?

Yesterday's decline means the Blackmores share price is now trading 9% lower than its 52-week high.

However, one leading broker believes investors should be sitting tight and waiting for a better entry point.

According to a note out of Goldman Sachs, its analysts have retained their neutral rating and cut the price target on its shares to $74.80.

Based on the current Blackmores share price, this implies potential downside of over 7%.

What did Goldman say?

Goldman was happy with the progress of its expansion into India and its investment in digital and supply chain projects. It expects the latter to improve efficiency and drive gross margin improvements.

However, it has concerns over its short term performance.

Goldman said: "Short-term outlook remains uncertain due to ongoing discounting pressure in the market and uncertainty in travel recovery. Capital expenditure is expected to accelerate from 2H22. Dividend payout ratio target has been reduced to 30-60%. Overall, while longer-term growth and expansion opportunities look positive, we think short-term uncertainties remain material. We revise our FY22E and FY23E EBIT forecasts by -8.6% and -5.1% respectively/ Our revised 12m Target Price on BKL is A$74.80. We maintain our Neutral rating on BKL."

Goldman isn't the only broker that is unsure about Blackmores at present. On Thursday, Citi put a sell rating and lowly $59.20 price target on Blackmores' shares. It has concerns over demand in the lucrative China market.