The BWX Ltd (ASX: BWX) share price certainly has been on form in 2021.
Since the start of the year, the personal care products company's shares have risen a sizeable 19% to $4.95.
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Can the BWX share price keep climbing from here?
The good news for investors is that one leading broker believes the BWX share price can keep on rising.
According to a note out of Bell Potter, its analysts have retained their buy rating and lifted their price target on the company's shares to $6.10.
Based on the current BWX share price, this implies potential upside of 23% over the next 12 months.
Why is Bell Potter bullish?
Bell Potter was pleased with BWX's solid performance in FY 2021, particularly given the COVID-19 headwinds it was facing.
In case you missed it, BWX reported a 3.4% increase in revenue to $194.1 million and an 11.6% lift in EBITDA to $34.5 million. This was in line with management's guidance for FY 2021.
Although Bell Potter acknowledges that the company is facing near term uncertainty, it remains very positive on its outlook. This is due to improving trading conditions in the US, margin expansion, and its acquisition of Go-To Skincare.
It commented: "Looking through near-term uncertainty we remain positive on the outlook for BWX, with improving conditions in North America, distribution gains and expanding margin outlook from BWX's new facility all on track to deliver for the company over the next 12-24 months."
"Factoring in changes from BWX's result, and the Go-To Skincare acquisition and BWX's Equity raising, we upgrade our EBITDA forecasts by +15.2% and +24.3% in FY22/FY23e respectively, driving no material change to our EPS in FY22e and an upgrade of +2.9% in FY23. We Maintain our Buy recommendation on BWX, with a revised price target of $6.10ps," the broker concluded.
