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.
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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."
