The a2 Milk Company (ASX:A2M, NZE:ATM) forecast aligned with an "incrementally more positive" outlook for the infant formula sector reported by infant formula ingredient supplier Clover Corp, according to a Tuesday report by the Australian, citing investment and financial services firm Citi.
Clover reported a 38% sales growth in the fiscal first half, driven by new products and a recovery in its infant formula business across Europe, Australia, and New Zealand, signaling improved demand from western manufacturers, Citi noted.
The company also reported inventory normalization after a stock build related to state administration for market regulation renewals in fiscal 2023, Citi said.
Citi analyst Sam Teeger expects this positive momentum to benefit A2 Milk, with market forecasts predicting 13% infant formula revenue growth in the company's fiscal second half.
The investment firm also said that challenges like declining birth rate and competition from domestic brands have now become an advantage, supporting the company's growth and market share gains.
Citi maintained a2 Milk Company's buy rating and its price target of AU$8.20.
Shares of the company fell past 2% at market close in Australia and past 1% in New Zealand.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。