Much to the delight of its shareholders, it has been another positive day of trade for the Bellamy's Australia Ltd (ASX: BAL) share price.
In late afternoon trade the organic infant formula and baby food company's shares are up a further 6% to $9.14.
This means that Bellamy's shares have rocketed an impressive 33% in the space of just six weeks.
Why is the Bellamy's share price on the rise?
Although there has been no news out of the company during this period of time, there have been a couple of notable broker notes that could be attributable to its strong share price performance.
One of those came last week when Morgan Stanley initiated coverage on the company with an overweight rating and $11.00 price target. This price target still implies potential upside in the region of 20% even after its stellar run.
The broker is bullish on the company's prospects due to its belief that the launch of its new formulation could be an inflection point for its sales and earnings growth.
Elsewhere, a note out of Citi in the middle of January was similarly bullish. Its analysts have a buy rating and $10.65 price target on Bellamy's shares.
It held firm with its buy rating despite its belief that the SAMR accreditation required to sell its products in China won't be finalised until the end of FY 2019.
Should you invest?
Whilst I would still choose rival A2 Milk Company Ltd (ASX: A2M) ahead of it due to it being less exposed to regulatory risks, I still see Bellamy's as a great long-term investment if you're willing to be patient.
Bellamy's financial performance is likely to underwhelm until it receives this accreditation, but when it is granted I believe its growth will move to the next level as it starts to sell Chinese label products in mother and baby stores throughout China.
What about Bubs?
Fellow infant formula company Bubs Australia Ltd (ASX: BUB) has seen its share price rise 27% during the same period, but I would caution investors off it until its operations are profitable.
