The a2 Milk Co Ltd
ATM: XNZE (NZL)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
NZD 4.00 | Rsqwn | Yxtzhnfzw |
A2 Milk Facing Near-Term Coronavirus Disruption, but Narrow Moat Intact
Business Strategy and Outlook
The A2 Milk Company has built a brand that we expect will protect economic profits for years to come. While best known in Australia for its fresh milk, A2’s future growth hinges more upon further successful penetration of the Chinese infant formula market, which we estimate made up nearly 85% of the firm’s EBITDA in fiscal 2020.