Good companies are always in play!

/

Bellamy's Australia Ltd (BAL) has surged +54.1%, following news China Mengniu Dairy Co. has agreed to buy the Company for A$1.5bn, offering a +59% premium to Friday's closing price.

Ballamy.png

Banyantree reiterated its positive view (Buy recommendation) on the stock on 2 Sept-19. Not much love from the market - consensus was Hold or Sell with avg price target of $8.11. BAL is also part of our Small Caps strategy - we initiated our position at the start of 2019 after following the stock for a number of years.

Good companies are always in play!

Bellamy’s Australia Ltd (BAL) is a Tasmanian company which distributes and markets certified organic infant formula and food products across Australia, China, and SE Asia.

So why did we like BAL? The following are just some of the reasons (taken from our research report to clients).

  • It has a targeted and distinctive product portfolio, with a solid brand. BAL’s new premium product ranges should expand the Company’s market share and establish BAL as a leader in the organic infant formula industry.

  • Strong consumer demand, especially growth in China for infant formula products.

  • BAL has a solid balance sheet with net cash position.