-- Stifel Canada is maintaining its buy rating and $45.00 price target on the shares of Jamieson Wellness (JWEL.TO) ahead of the company reporting its first-quarter results on May 7.
Analyst Justin Keywood forecasts 11.5% organic growth, to $163 million, with potential upside from a high flu prevalence. Adj. EBITDA margin of 12.6% is also forecast. Keywood notes the first quarter is the lowest margin quarter as ordering patterns are more pronounced with greater scale for the second to fourth quarters.
Jamieson offers pure-play exposure to the "Mega Health & Wellness" trend: it is the largest vitamin company in Canada with 3x market share vs. the next largest competitor. Young consumers are entering the VMS (vitamins, minerals and supplements) category early, where historically, demand has been correlated with age. All of this is contributing and setting up for a "confluence of positive tailwinds," he writes.
Price: $33.74, Change: $+0.12, Percent Change: +0.36%