Bellamy’s (BAL) is a Tasmanian company which distributes and markets certified organic infant formula and food products through Australia, China and SE Asia. We initiate coverage on BAL with a Buy rating and a $16.06ps target price. Our favourable view on BAL is supported by: (1) Exposure to growing demand for Australian made infant formula and food products in China and SE Asia; (2) Expansion of the distribution footprint in Australia with less than half the addressable market currently serviced; (3) Rising demand for organic products in Australia and Asia; (4) The potential to expand the infant food products business which to date has been a modest revenue and earnings contributor; (5) ability to expand the geographical distribution footprint; and (6) BAL is trading at an undemanding valuation relative to global IMF and functional food sector on an FY17e EV/EBITDA basis.