A2M – UBS rates the stock as Buy

UBS believes tracking Australasian infant formula sales has become more challenging amid a disconnection from Australian exports.

The broker is pleased there are some signs of stable activity in retail daigou while a2 Milk’s peers report a sequential improvement in corporate daigou demand.

Feedback also suggests to the broker that elimination of coronavirus in Australia and the removal of associated health concerns around indirect purchases of infant formula remains critical to a substantial recovery in daigou. Buy rating and target of NZ$16.00.

Sector: Food, Beverage & Tobacco.

 

Current Price is $7.73. Target price not assessed.

 

 

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