My estimate of A2M's EPS was pretty spot on, AUD$0.24.
A2M current PE is 43
View attachment 1258124
I expect BAL EPS to be around 42c, PE to be around 23.5
View attachment 1257635
Broker targets:
BAL:
05/08/2018,
Goldman Sachs released a note and put
$21 price target on Bellamy's.
A note out of Goldman Sachs this morning reveals that it remains bullish on both companies’ prospects.
According to the note, centred around the Chinese consumer staples market, Goldman expect the infant milk formula market to grow by a compound annual growth rate of 9% through to FY 2020.
Although the broker doesn’t necessarily believe the market will grow much by way of volume due to the current high level of penetration and a shrinking marriageable population, it expects the value of the market to grow through premiumisation, demand from lower tiered cities, and niche category expansion.
In light of this, the broker think both companies are positioned well for growth and has price targets of $12.20 on a2 Milk Company’s shares and
$21.00 on Bellamy’s shares, implying significant upside for both of them.
https://www.********.au/2018/08/06/...a2m-and-bellamys-australia-ltd-asxbal-shares/
A2M:
View attachment 1258127
