Macquarie takes a closer look at the US fresh milk opportunity, the largest consumer market in the world. A2 Milk is currently building its market share, experiencing a similar development profile to Australia, which the broker finds encouraging.
Macquarie assumes a2 Milk has a 10-year build up to a 2% share of value. Outperform rating maintained. Target is raised to $16.10 from $15.75.
Sector: Food, Beverage & Tobacco.
Target price is $16.10.Current Price is $13.76. Difference: $2.34 – (brackets indicate current price is over target). If A2M meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
