Citi optimistic on a2 Milk's FY25 outlook, raises PT for ASX-listed shares

A2 Milk

24/11/2024 22:17

** Analysts at Citi raise PT for ASX-listed shares of a2
Milk  A2M.AX  by 2% to A$7.15; reiterate "Buy" rating
    ** Brokerage forecasts 7% FY25 revenue growth, up from 5.6%,
to reflect the dairy giant's raised FY25 revenue forecast
    ** Brokerage raises FY25 NPAT estimate by 1% for co
    ** Earlier-than-expected introduction of a dividend policy
was a positive surprise, adds Citi 
    ** Citi sees near-term catalysts for co including potential
for further China government stimulus aimed at increasing the
birth rate beyond CY24
    ** Citi says A2M could also see market share gains due to
the structural shift to English label and from new product
development, its new English label product which is more premium
than platinum to launch later in FY25
    ** Stock up 27.9% this year, as of Friday's close

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))