what do you think of Wattle Health (WHA) and Bellamy’s Australia (BAL). Are these good stocks to keep or accumulate?
A: Re Bellamy’s (BAL) and Wattle Health (WHA). I am not a huge fan of the Chinese/Asian dairy/organic milk story – think this has been over-hyped and stocks such as Bellamy’s remain expensive. According to FN Arena, only 3 of the major brokers cover it – with 1 buy and 2 hold recommendations (Morgan Stanley downgraded today). The consensus target price is $9.53, about 12.4% lower than today’s closing price of $10.88.
None of the major brokers cover Wattle Health and I can’t say I have a view either.