A2 Milk Co has received necessary approvals to market its A2...

A2 Milk Co has received necessary approvals to market its A2 Platinum infant formula in the US on an ongoing basis from the second half of FY23. While Credit Suisse expects this will support a breakeven of the company's US operations by FY25, it is cautious on significant valuation uplift. The broker finds the US market highly competitive, with 90% of the market held by four major players. Credit Suisse also warns lower pricing and higher costs will likely drive a lower earnings margin on US products. The Neutral rating is retained and the target price increases to $5.30.