Can A2 Milk (ASX:A2M) go to $6?
Marc Kennis, January 12, 2024
A2 Milk: The Comeback Kid
Stuart Roberts from Stocks Down Under presents an interesting view on A2 Milk (ASX:A2M), stating it as a potential stock comeback after a downfall that followed the China trade wars. Despite the reducing birth rates in China, he suggests A2 is still a preferred premium brand from the infant to adult demographics.
According to Stuart, a cultural inclination in China towards milk, a growing brand and the company’s anticipation to meet Chinese market guidance clearly indicate A2’s strong execution plans. Besides, he emphasises A2’s potential as a global brand with a healthy product derived from specially bred cattle.
Substantial upside to A2M
Looking ahead, Stuart believes that the conventional selling process, including building a strong marketing team for the Chinese market, could drive growth forward. He sees room for supply chain improvements and market expansion. Given the overall performance, he expects the share price could go up to at least $6. Looking at the dairy sector in general, he perceives a comeback in the Chinese milk market and hints at similar potential for other milk-related companies such as Bubs.
Watch Stuart talk about A2 Milk on Ausbiz
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