a2 Milk is in a trading halt ahead of a potential update to its guidance.
Some issues facing the company include a slower-than-expected recovery in infant formula sales via daigou channels and surplus channel inventory, suggests UBS. The broker believes demand will return over time with receding covid led disruptions.
Choosing to look through the short-term earnings volatility, UBS maintains its Buy rating with a target of NZ$20.50.
Sector: Food, Beverage & Tobacco.
Current Price is $13.28. Target price not assessed.
