Something from Citi....
Aside from that Citi mentions...
We rate a2 Milk as a Sell. a2’s small but growing market share in China, combined with its strong track record, suggests substantial runway for growth remains. However, we see the outlook as increasingly risky given the ongoing resurgence of Chinese brands combined with an evolving regulatory landscape. a2 utilising its cash balance for acquisitions and/or capital management is the biggest risk to our investment thesis.
I was wondering, don't you think an acquisition would actually be a good way to boost growth. Like to diversify. For example look at Bellring...
https://bellring.com/
https://www.dymatize-athletic-nutrition.com/de_CH/
They are in end-markets growing much faster (Nutrition etc.). I mean A2 could create Whey protein etc based on A2 milk powder....organically. I know the space is highly competitive. But just saying. To diversify into other business is the logical way in the medium-term. What do you think?
Something from Citi....Aside from that Citi mentions...We rate...
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$5.99 |
Change
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| Open | High | Low | Value | Volume |
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| Last trade - 16.10pm 03/05/2024 (20 minute delay) ? |
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Change
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