Update shared on 27 Nov 2025
Fair value Increased 6.02%Analysts have raised their price target for a2 Milk from $9.37 to $9.93 per share. They cite improved revenue growth expectations, although the profit margin outlook is slightly lower.
What's in the News
- The a2 Milk Company received approval from New Zealand and Chinese authorities for the process to transition China label infant milk formula registrations to a2MC branded products. Final approval is expected in 2026, with a potential product launch in the first half of 2027 (Regulatory Authority: Compliance).
- For 2026, a2 Milk expects low double-digit percentage growth in earnings compared to fiscal year 2025 (Corporate Guidance: New/Confirmed).
- a2 Milk expanded its strategic partnership with China State Farm Agribusiness Holding Shanghai Co. Ltd. to distribute English label infant milk formula products through cross-border eCommerce channels, with plans to include additional products (Client Announcements).
- The company was added to the S&P Global BMI Index on the Australian Securities Exchange but was dropped from the index on the New Zealand Stock Exchange (Index Constituent Changes).
Valuation Changes
- Consensus Analyst Price Target: Increased from NZ$9.37 to NZ$9.93 per share, representing a modest rise.
- Discount Rate: Remained unchanged at 7.10%.
- Revenue Growth: Increased slightly from 5.90% to 6.69%.
- Net Profit Margin: Declined marginally from 12.83% to 12.73%.
- Future P/E: Increased from 28.80x to 30.09x, indicating slightly higher future earnings expectations.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.