Media Updates, page-12445

The MQG price target of $5 is interesting.

I think they would have estimated EPS for year ending 30 June 2024 at say 30 cents.

30 cents divided by $5 is 6%, which is minimum return for the stock market.

If they wanted a higher return than 6% then their forward 12 months price would be less than $5.

But do your own sums. There are only two variables, estimated EPS and the return you want = share price.

I think the hard reality for a2 is they are changing their profile from a high sales low marketing cost company to a more boring medium sales growth higher marketing cost type company, with a much higher overall strategic risk profile, e.g. registration for Synlait. The share price reflects this.

I am anticipating a long hard road ahead for A2. the medium/longer term should be ok because its a good product.

GLTASH