Bellamy’s Shares (ASX BAL) rose up to 5.9 percent to $16.01, just shy of the all-time high of $16.163. This is its strongest level since 20th December 2015 for BAL shares. We feel BAL stock currently has strong earnings momentum.
Bellamy’s continues its eighth day of gains out of nine and is the sharpest intraday rise in a week. BAL is currently amongst the top gainers on the ASX All Ordinaries index. BAL was a stellar performer in 2017 rising 59.8% and is up 44.6% as of this Tuesday.
Revenue Growth Smashes Forecasts
BAL shares raised its full-year revenue forecast and Excluding its Camperdown business, Bellamy’s expects its core business to post revenue growth of 30-35 percent for FY18, much higher than the forecast of 10-20%. Earnings margin for its core business has also risen from 17-20% to 20-23%.
Bellamy’s Australia Buys The Rest Of Camperdown Powder
Bellamy’s stock has bought the remaining 10% stake in Camperdown Powder for about $3.6 million, subject to the China Food and Drug Administration’s approval. ASX BAL stock completed buying the other 90% in July last year. Chinese authorities lifted the suspension of Bellamy’s import license in August.
Bellamy’s shares have broken into a new uptrend on high volume, indicating that this could be the start of another strong rally. In particular, the consolidation area between $10.00 and $13.00 has been broken and fair value is currently unknown.
ASX BAL stock is a brand that currently resonates well with Chinese buyers. With China transitioning into a consumption economy, expect any stocks that produce high-quality agriculture to have high upside as China consumers look towards high-quality exports. With strong fundamentals in play and strong institutional buying volume, we except BAL stock to have a strong upside bias.
Disclosure: MF & Co. Asset Management and the author owns shares in Bellamy’s Australia.
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