ATM - A2 Milk Corporation Limited

[Biscuit]

..... will they support him if he comes up with the same strategy as Jayne?

You would think they discussed strategy with him prior to appointing him? Maybe they just discussed shares and car parking?

[dreamcatcher]

Covfefe
Covfefe

Trump had a few deficiencies spelling been one ............means someone get me a COFFEE

[Balance]

You would think they discussed strategy with him prior to appointing him? Maybe they just discussed shares and car parking?

You would think so, wouldn’t you?

Did they discuss strategy with Jayne before appointing her and then, disagreeing with her 15 months later?

Short term pain for long term gain - rather fundamental!

[Balance]

Motley Fool update : A2 Milk Company Ltd

A2 Milk shares are liked by at least four brokers including UBS and Morgans.

The A2 Milk share price is down by around 45% over the last six months.

UBS believes that A2 Milk could benefit from a recovery of sales with infant formula as it reactivates its daigou channel over the next year and a half. The broker also thinks that company could achieve market share gains at Chinese mother and baby stores.

However, whilst there continues to be COVID-19 restrictions for international visitors, combined with disappointing export data, it’s likely that there will be weak infant formula sales for the time being.

A2 Milk itself has admitted to these problems. In the most recent update the company said that the disruption in the daigou channel, which represents a significant portion of the infant nutrition sales in the Australia and New Zealand business, was proving to be more significant and protracted than was previously anticipated.

One problem for the ASX share is that the daigou channel disruption is having a material impact on the cross border e-commerce channel (CBEC). A2 Milk says that the daigou channel plays an important role in stimulating demand across multiple sales channels, including CBEC.

A2 Milk said that it intends to strengthen its focus on reactivating the daigou channel in the second half of FY21.

On the mother and baby store (MBS) front in China, A2 Milk said that this remains very strong – it’s expecting to report revenue growth of 40% from this channel. The 12-month rolling market value share in MBS also continues to increase, it was 2.3% as at the end of October, with increases in both same store sales and the number of new stores in the first half.

[dreamcatcher]

Good breakdown of UBS write up

[Balance]

https://www.marketscreener.com/quote...IMIT-11384022/

Consensus recommendation from 9 brokers : Hold

Mean target price : $13.56 vs $10.97

23% upside potential vs potential 3rd downgrade - hmmmm

[James108]

So what is it? Will atm keep growing? If so price is surely cheap? Or are recent downgrades indicative of no/low growth going forward but being blamed on covid.

[Balance]

So what is it? Will atm keep growing? If so price is surely cheap? Or are recent downgrades indicative of no/low growth going forward but being blamed on covid.

That’s the great thing about the market - opposing views and one will be right! Choose carefully!

[BlackPeter]

So what is it? Will atm keep growing? If so price is surely cheap? Or are recent downgrades indicative of no/low growth going forward but being blamed on covid.

Correct ;

[Balance]

Correct ;

As they say, on the one hand but on the other hand.