Analysts at Citi upbeat on NZ's a2 Milk after strong port data

A2 Milk

21/03/2025 05:04

** Analysts at Citi reiterate "buy" rating for New Zealand-based dairy producer a2 Milk ATM.NZ due to strong New Zealand port data

** Says data indicates an acceleration in infant formula exports across ATM's key channels

** This acceleration is likely due to supply chain normalization, strong demand, and increased marketing investments by a2 in the second half of FY25 - Citi

** ATM shares, however, were down 2.4% to NZ$8.94, their lowest levels since March 14

** Citi believes that the current revenue growth outlook for FY25 (low- to mid-double-digit, Citi estimate +11%) might be conservative

** a2 Milk stock up 45.4%, YTD

 (Reporting by Roushni Nair in Bengaluru)

 ((Roushni.nair@thomsonreuters.com;))