Stock watch A2 Milk The a2 Milk Company continues to rally...

Stock watch
A2 Milk
The a2 Milk Company continues to rally hitting a record $7.93 on Wednesday after a trading update the day before put four-month revenue growth at 69 per cent. The company's shares are up 75 per cent since August. The rapid growth can be attributed to high demand for formula in the Chinese market along with US performance tracking to expectation. The a2 Milk Company's China based flagship store recorded a 65 per cent increase in stage one sales contributing to the company's 138 per cent rise in net profit after tax to $NZ52 million. According to a2, it will devote more resources to marketing in China, target lower costs and rebuild of inventory to more sustainable levels. Deutsche Bank's 12-month share price target is $8.10, and the broker recommends holding shares as the company looks to expand its footprint in different cities across China.