Top broker tips BWX (BWX) share price to leap 42% in 2022

BWX shares have been tipped to outperform in 2022…

| More on:
Two women jumping into the air.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

The BWX Ltd (ASX: BWX) share price has been a relatively poor performer in 2021.

Since the start of the year, the personal care products company's shares have risen almost 4% to $4.29.

This compares to a gain of 9.6% by the S&P/ASX 200 Index (ASX: XJO) over the same period.

Where next for the BWX share price?

The good news for investors is that one leading broker believes the BWX share price is primed to leap higher in 2022.

According to a recent note out of Bell Potter, its analysts have picked the Sukin manufacturer as one of their top picks for next year.

Bell Potter has put a buy rating and $6.10 price target on the company's shares. Which, based on the current BWX share price, implies potential upside of 42% for investors over the next 12 months.

Why is Bell Potter bullish?

The broker notes that BWX has been busy expanding its distribution footprint in the natural beauty and wellness market. So much so, the broker expects the company's footprint to grow by ~42% year on year in FY 2022.

And while it acknowledges that COVID-19 lockdowns have impacted its retail sales, Bell Potter was pleased to see channels return to normal in November.

All in all, its analysts believe the company is well-placed for the future and see a lot of value in the BWX share price.

Bell Potter commented: "On a look through basis, we believe BWX is well placed to deliver strong Underlying Revenue & EBITDA growth in FY22 (weighted to 2H22) as retail trade normalises and sell-through improves. This should be supported by BWX's recent acquisition of 51% of Go-to Skincare which is tracking +13% vs. PcP in 1Q22, and manufacturing synergies over the medium term as BWX phases in the use of its purpose built facility in CY22. We believe the market has recently priced in expectations for a soft 1H22, which presents a compelling buying opportunity at current levels."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BWX Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes

Broker Notes

Broker warns regulated electricity could threaten AGL shares 

What could the government review mean for utility stocks?

Read more »

Two brokers analysing stocks.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A young well-dressed couple at a luxury resort celebrate successful life choices.
Broker Notes

These ASX 200 shares could rise 40% to 50%

Analysts at Macquarie see potential for these shares to deliver the goods for investors.

Read more »

Six smiling office colleagues stand in a row and look at the camera.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

woman holding 'hiring' sign in shop
Broker Notes

How much upside does Macquarie tip for Seek shares?

The broker recently reviewed Australian job ad volumes for May.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Broker Notes

Macquarie tips 50% return for this cheap ASX All Ords stock

Let's see which stock the broker is feeling bullish about this week.

Read more »

A woman sits at her home computer with baby on her lap, and the winning ticket in her hand.
Consumer Staples & Discretionary Shares

How much upside does Macquarie expect for Lottery Corporation shares?

This ASX 200 stock has proven resilient through various economic conditions.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Broker Notes

Guess which ASX 300 stock was downgraded to sell today

Bell Potter has become bearish on this stock. But why?

Read more »