A2M 0.16% $6.24 the a2 milk company limited

Top broker says buy A2 Milk Company Ltd (ASX:A2M) shares, page-4

  1. 272 Posts.
    lightbulb Created with Sketch. 121
    The Goldman Sachs note on 16 May 2018 has 12 months forecast prices of NZ $13.80 and AUD 12.90.

    I usually discount the 12 months forward price by 10% to arrive at todays value i.e AUD 12.90 minus AUD 1.29 = approx AUD 11.61. I.e. would say as a base case a2m is worth at least AUD 11.61 today . The GS forecast has 30% sales increase built into 6/19 estimated sales. i.e EPS 6/19 of .43.

    Think a2m will exceed 30% sales increase ye 6/19 thus current value probably more than 11.61 but this is hard to quantify.

    A2m fan.
 
watchlist Created with Sketch. Add A2M (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.