Morningstar has finally begun coverage of A2m. They generally only cover well established companies... e.g. no way they would bother analysing bubs or even Bellamys. They only cover majors like BHP, large banks etc. I take their coverage of this as a positive sign (not that A2m wasnt well established before today).
They reckon 20% growth per year on average over the next 10 years (high growth now slowing down in future but 20% average). Nothing new in their comments that we dont already know. Mostly the biggest risk is possible scientific evidence that negates the effects of A2 milk but if we read all the comments from consumers who can drink this milk without digestive problems, I think we are safe. They have mentioned other risks but I cant them being a problem because of our management.
Valuation is 13.30AUD/14.6NZD. If I understand correctly, this is valuation for now, not a price target for 12 months.
I expect the SP to be above $13 after the AGM if there is no negative news in the AGM. If positive news then $15 by end of year. Positive news could be much higher than expected growth in USA and breakeven before the 3 year timeline in the last report.
A2M Price at posting:
$11.24 Sentiment: Hold Disclosure: Held
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