New Zealand's a2 Milk falls to 3-month low; Citi downgrades rating to 'neutral'

A2 Milk

09/07/2025 02:44

Updates with share moves

** Shares of New Zealand's a2 Milk ATM.NZ fall as much as 4.8% to NZ$7.980, their lowest level since April 7

** Citi downgrades the dairy co's rating to "neutral" from "buy", citing several datapoints that made the brokerage "incrementally" more cautious on the dairy producer's near-term expectations

** Brokerage says no changes to earnings forecasts made, but lowers recommendation as stock price are currently over-valued

** Citi says softening port data, profit warning of company's overseas peer, China Feihe 6186.HK, due to factors, including a reduction in channel inventory to manage freshness and quality, weighing on expectations

** Birth rate spikes because of the Chinese traditional Dragon year have not reached "stage 3" consumer phase and create uncertainty ahead of August 18 full-year results - Citi

** Stock up 33% YTD, as of 0138 GMT

 (Reporting by Anjali Singh in Bengaluru)

 ((anjali.singh2@thomsonreuters.com;))