The Blackmores Limited (ASX: BKL) share price has been a poor performer in 2022.
Since the start of the year, the health supplements company's shares have tumbled 15% to $77.53.
Is the Blackmore share price good value now?
According to a recent note out of Morgans, its analysts aren't ready to buy the company's shares just yet.
Its analysts have maintained their hold rating on the Blackmores share price. Though, with a price target of $88.50, this suggests that there could still be decent upside for investors over the next 12 months.
What did the broker say?
Morgans notes that Blackmores delivered a largely positive result during the first half of FY 2022. Though, it was disappointed with the performance of the China business, which experienced a marked slowdown on ecommerce platforms.
The broker said: "Blackmores' 1H22 result beat our EBIT forecast but missed our NPAT due to higher than expected minorities. Impressively, strong sales growth was reported across International, and ANZ reported double digit EBIT growth. However, China disappointed."
"The China result was materially weaker than expected due to the slowing growth on e-commerce platforms, lower levels of domestic travel and elevated economic uncertainty," it added.
And while Morgans acknowledges that management has a clear strategy aiming to deliver strong earnings growth in the coming years, it isn't enough for a more positive rating. This is due to the multiples the Blackmores share price trades on and the risks that its ANZ business is facing.
The broker concludes: "After revising our forecasts, our valuation has decreased to $88.50. BKL has a clear strategy to deliver material earnings growth through to FY24. However, growing ANZ's revenue in line with its targets won't be easy given structural and competitive threats and this may also be the case for China following today's weaker than expected result."
