On Monday, BMO (TSX:BMO) Capital has reaffirmed its Outperform rating on Jamieson Wellness Inc. shares (TSX:JWEL:CN) (OTC: JWLLF), with a steady price target of Cdn$35.00. BMO's endorsement follows a series of meetings with the senior management of the company in Europe, which bolstered the firm's confidence in Jamieson's strategic direction.
The company, known for its health products, is on track to achieve its ambitious revenue goal of over Cdn$1 billion. This target is primarily expected to be met through the growth of the Jamieson Brands segment, which is expanding across key global markets. The firm highlighted that the brand's performance is backed by enduring market trends that favor the wellness industry.
BMO Capital pointed out the significant potential for Jamieson in the U.S. and China markets, which are seen as major areas for expansion. While acknowledging the inherent risks in these ventures, the firm expressed optimism about the prospects of these markets contributing to a rapid increase in earnings for Jamieson Wellness.
The reiteration of the Outperform rating by BMO Capital comes at a time when they perceive the stock to be undervalued. The firm's analysis suggests that the current stock price does not fully reflect the company's growth potential, indicating a favorable risk-reward scenario for investors. BMO Capital's stance remains firmly positive on the prospects of Jamieson Wellness.
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