Despite having better sales momentum than Swisse in A&NZ, competition could increase for Blackmores over 2021 as Swisse plans to invest in marketing and branding and expand its practitioner brand Nutra+, explains Citi. The $59.20 target and the Sell rating are retained.
The broker calculates the company is trading on high multiples and has concerns about the performance in Australia, just when competition is increasing and the company is reducing its investment in its salesforce.
Sector: Household & Personal Products.
Target price is $59.20.Current Price is $82.92. Difference: ($23.72) – (brackets indicate current price is over target). If BKL meets the Citi target it will return approximately -40% (excluding dividends, fees and charges – negative figures indicate an expected loss).
