A2 Milk's ASX shares inch lower; Citi positive on infant formula sector

A2 Milk

19/03/2025 24:40

** Australia-listed shares of a2 Milk A2M.AX down 0.7% at A$8.47

** Citi says food tech firm Clover's strong 1H25 results suggests positive near-term outlook for infant formula sector

** Clover, an infant formula ingredient supplier, logs HY net profit after tax A$2.4 million ($1.53 million) vs loss A$0.6 mln last year

** Citi flags recovery of infant formula business in Europe and ANZ in Clover's results

** A2's execution has been strong in recent years when the birth rate was declining and domestic brands were taking share; both of those headwinds have now turned to tailwinds - Citi

** Citi also expects new market gains for a2 Milk as co accelerates new product development

** Brokerage maintains "Buy" rating and price target A$8.2

** Stock up 46.5% YTD, including current session's moves

($1 = 1.5723 Australian dollars)

 (Reporting by Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))