A2M – UBS rates the stock as Neutral

It was another strong result from a2Milk, ahead of the broker, driven by A&NZ and China. There is no sign of a slowing of demand in China, the broker notes, and the a2 brand continues to enjoy a strong customer response. FY20 should see the benefits of marketing spend in the second half.

The broker would like to have a more positive view overall but retains Neutral, concerned about a single a2 brand and a rich valuation. New product launches would help, particularly in the US which the broker sees as an underappreciated opportunity. Target rises to NZ$14.00 from NZ$11.80.

Sector: Food, Beverage & Tobacco.

Current Price is $13.64. Target price not assessed.

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →