The a2 Milk Co Ltd
ATM: XNZE (NZL)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
NZD 1.00 | Vkxrxyd | Vcvjdsvwt |
A2 Milk: Success in China Remains Crucial
We maintain our NZD 8.00 (AUD 7.20) fair value estimate for a2Milk. China is its key battleground. And there are hurdles leaving shares in a2 Milk materially undervalued. The new registration process is weighing on the near term, and demographics and consumer trends are weighing on the longer term. Nevertheless, we expect a2 Milk to continue capturing share in a declining market as increasing premiumization partially offsets falling births in China.