Citi picks Bubs, a2 Milk as top Food & Beverage stocks ahead of HY results

A2 Milk

21/01/2022 04:47

** Citi picks infant formula stocks Bubs Australia  BUB.AX 
and a2 Milk  ATM.NZ   A2M.AX  as top stocks in the food and
beverage sector ahead of half-yearly results reports
    ** We are seeing positive signals around reseller pricing,
inventory freshness and the brands getting closer to end
consumers - Citi
    ** Says the recovery in the China's daigou channel after
COVID-19 disruption will drive growth for Bubs and a2
    ** Brokerage says Domino's Pizza Enterprises  DMP.AX  is its
third pick as although long term rollout is intact and M&A
potential remains, it expects short-term conditions to be
challenging
    ** Citi has a "buy" rating on Treasury Wine  TWE.AX  on
improving sales momentum in higher-margin channels in the U.S.,
while Blackmores  BKL.AX  has a "sell" rating given the lack of
strategic partners and questionable sustainable earnings in
China 
    ** Brokerage expects Costa Group's  CGC.AX  FY21 results to
be largely in line with prior guidance, with a favourable berry
pricing environment largely offsetting later-season citrus
quality issues

 (Reporting by Arundhati Dutta in Bengaluru)
 ((Arundhati.Dutta@thomsonreuters.com;))