Citi says Domino's top pick in Aussie F&B, upbeat on Treasury Wine

A2 Milk

13/08/2021 01:47

** Citi names Domino's Pizza Enterprises  DMP.AX  as its top
pick in the Australian food and beverage sector, raises rating
and price target
    ** Brokerage sees DMP having more well defined long-term
growth drivers vs some peers and lower structural pressures
compared with stocks with China exposure
    ** Hikes rating to "buy" from "neutral" and PT to A$145.60
from A$120
    ** Citi bullish on Treasury Wine Estates  TWE.AX  as it
expects higher margin on-premise sales channel to benefit from
reduced COVID-19 curbs in the U.S. and lower wine grape prices
in Australia
    ** Lifts rating to "neutral" from "sell/high risk" and PT to
A$12.10 from A$9.70
    ** Brokerage remains bearish on health products developer
Blackmores  BKL.AX  due to elevated competition and expectation
that pharmacy channel could take longer to recover from its
pandemic-driven slump
    ** Says infant formula maker Bubs  BUB.AX  will need to ramp
up investment in FY22, and remains "neutral" on dairy producer
a2 Milk  A2M.AX 
    ** Up to Thursday's close, DMP up 44.3% this year, TWE up
26.1%, BKL up 2.1%, BUB down 31.1%, and A2M down 48.8%

 (Reporting by Shashwat Awasthi)
 ((Shashwat.Awasthi@tr.com
mailto:Shashwat.Awasthi@thomsonreuters.com))