A2M – UBS rates the stock as Buy

UBS analysts are of the opinion that investor caution suggest future recovery is yet to be priced in to A2 Milk Company’s share price, expecting the company is approaching a three-year period of meaningful recovery.

The broker notes A2 Milk Company should benefit from improved online English-label infant milk formula sales and share gains in the China-label infant formula sector. Expect FY24 earnings per share to be up 122% on FY22 results.

In the nearer-term, the broker notes the start of FY22 has been slow, driven by market headwinds, but earnings forecasts remain in reach.

The Buy rating and target price of NZ$10.20 are retained.

Sector: Food, Beverage & Tobacco.


Current Price is $5.45. Target price not assessed.



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