After increasing infant formula demand assumptions for China, UBS upgrades EPS forecasts for FY22 and FY23 by 2% and 4%, and raises the target price to $5.50 from $5. The Underperform rating is unchanged.
The broker’s earnings forecasts are below consensus, in recognition that the daigou trade has been structurally reduced to near zero sales contribution and the the company’s English Label is no longer sufficiently differentiated.
Sector: Food, Beverage & Tobacco.
Target price is $5.50.Current Price is $6.52. Difference: ($1.02) – (brackets indicate current price is over target). If A2M meets the Credit Suisse target it will return approximately -19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
