Macquarie raises its target price to $93.50 from $78.50 after Blackmores posted FY21 results. Earnings (EBITDA) rose 44% versus the previous corresponding period, driven by International and China, with A&NZ sales down -14% though cost savings supported margins.
While the near-term outlook appears benign with lockdowns, e-Commerce, Pet and investment in the Blackmores and BioCeuticals brands should provide some relief, explains the analyst.
The company seems on-track to hit $900m of sales in FY25 and earnings (EBIT) margins in the mid-teens (percentage) by FY24, highlights Macquarie. The Neutral rating is unchanged.
Sector: Household & Personal Products.
Target price is $93.50.Current Price is $94.26. Difference: ($0.76) – (brackets indicate current price is over target). If BKL meets the Macquarie target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
