BUZZ-Citi optimistic on a2 Milk's FY25 outlook, raises PT for ASX-listed shares

Reuters
2024-11-25
BUZZ-Citi optimistic on a2 Milk's FY25 outlook, raises PT for ASX-listed shares

** Analysts at Citi raise PT for ASX-listed shares of a2 Milk A2M.AX by 2% to A$7.15; reiterate "Buy" rating

** Brokerage forecasts 7% FY25 revenue growth, up from 5.6%, to reflect the dairy giant's raised FY25 revenue forecast

** Brokerage raises FY25 NPAT estimate by 1% for co

** Earlier-than-expected introduction of a dividend policy was a positive surprise, adds Citi

** Citi sees near-term catalysts for co including potential for further China government stimulus aimed at increasing the birth rate beyond CY24

** Citi says A2M could also see market share gains due to the structural shift to English label and from new product development, its new English label product which is more premium than platinum to launch later in FY25

** Stock up 27.9% this year, as of Friday's close

(Reporting by Sherin Sunny in Bengaluru)

((Sherin.Sunny@thomsonreuters.com))

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