Macquarie, Bell Potter flag headwinds for NZ's Synlait Milk despite strong recovery

Synlait Milk

24/03/2025 23:29

** Shares of Synlait Milk SML.NZ fall 3.3% to NZ$0.87, among biggest percentage loser in benchmark NZ50 .NZ50 index

** Macquarie says SML's strong first-half recovery of EBITDA was aided by advanced nutritional segment

** However, brokerage flags caution against repeat of first-half EBITDA in second half due to potential headwinds in ingredients business and others

** Bell Potter notes first-half adj. EBITDA exceeding forecast, with sales up 16% YOY, but warns about rival A2 Milk ATM.NZ possibly integrating their supply chain assets i.e. detrimental to SML's nutrition business

** Macquarie maintains 'underperform' rating but trims PT to NZ$0.47 from NZ$0.44

** Bell Potter maintains 'hold' but ups PT for ASX-listed shares SM1.AX to A$0.92 from A$0.90

** Stock has doubled in value YTD

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))