CIBC Inititate CoverageEQUITY RESEARCH
March 23, 2026 Initiating Coverage
JAMIESON WELLNESS INC.
The Thrill Of The Vite – Initiating JWEL At Outperformer
Our Conclusion
As of March 23, we initiate coverage of JWEL with an Outperformer rating
and $43 price target, based on 18x our 2027E EPS. JWEL is a leader in the
attractive vitamin, mineral, and supplement (VMS) industry, with a dominant
market position in Canada and a growing international presence. JWEL’s
international strategy remains in an investment phase and carries some
risks, but has a long runway for additional growth and margin expansion, in
our view. We believe there is potential for modest valuation upside from
strong execution, though this is not central to our thesis, and we see an
attractive return profile for JWEL shares underpinned by mid-teens EPS
growth, an improved cash flow profile, and a 2.7% dividend yield.
Key Points
Dependable Core Canadian Business: JWEL’s Canadian branded
business (~45% of sales) produces dependable low/mid-single digit revenue
growth and strong (~25%+) EBITDA margins with steady operating leverage.
JWEL is the dominant category leader in Canada, where it benefits from
significant brand recognition and pricing power.
Strong Growth Profile Led By International Markets: We believe JWEL
has significant runway in the U.S. and China, which have been delivering
double-digit growth and improving profitability. JWEL should also continue to
benefit from growth in the overall VMS industry, which is being supported by
longstanding cultural and demographic trends (e.g., aging populations), and
may eventually benefit from emerging opportunities around GLP-1s, where
JWEL has been an early mover. Overall, we believe JWEL has an algorithm
for sustained double-digit EPS growth, which should support share price
appreciation over time. Additionally, we view U.S. M&A as a potential
catalyst in 2026 that could add ~10% to our EPS estimates.
Valuation Is Reasonable: Valuation has compressed in recent years
(currently 16x NTM P/E vs. historical average of >20x) despite an
accelerating pace of earnings growth, which we partly attribute to investor
caution around international growth execution and geopolitical risks. Though
not necessarily cheap, we view JWEL’s valuation as reasonable considering
its growth profile, and believe additional downside is relatively limited, noting
that JWEL now trades slightly below peers and only ~1x above all-time lows.