New Zealand's Synlait Milk gains as Macquarie raises PT after North Island asset sale

Synlait Milk

01/10/2025 04:19

Updates

** Shares of Synlait Milk rise as much as 3.2% to NZ$0.815

** Macquarie raises price target of the New Zealand-based dairy processing firm by 44% to NZ$0.59, maintains "underperform" rating

** Macquarie says divestment of Synlait's North Island segment for NZ$307 million ($177.75 million) reduces debt and is on attractive terms

** Synlait shows start of recovery but uncertainties remain regarding North Island sale, cost impact of a2 Milk's ATM.NZ accelerated insourcing, strategic changes and cost of improving operational resilience — Macquarie

** Macquarie adds FY25 underlying EBITDA of NZ$107 million signals recovery following a tough year, but flags manufacturing challenge dampened FY25 earnings

** Equity research firm lowers FY26 and FY27 EPS forecast for Synlait by 20%

** Stock up 85.1% YTD, including the day's moves

($1 = 1.7271 New Zealand dollars)

 (Reporting by Keshav Singh Chundawat and Nikita Maria Jino in Bengaluru)

 ((Keshav.singhchundawat@thomsonreuters.com))