A2M 0.00% $6.88 the a2 milk company limited

UBS rates A2M as Buy (1) -UBS found the AGM update positive,...

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    UBS rates A2M as Buy (1) -

    UBS found the AGM update positive, with operating earnings margin (EBITDA) guidance upgraded. The fact that gross margin drove the upgrade is positive in the broker's opinion, as it suggests the company is not discounting in order to move product.


    The broker lifts estimates by 5-6% to reflect first half revenue guidance of NZ$780-800m and EBITDA margin guidance of 31-32%. Buy rating maintained. Target is raised to NZ$17.00 from NZ$16.10.

 
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