Analysts have raised their price target for Synlait Milk from $0.67 to $0.73. This reflects revised expectations around the company's fair value despite ongoing challenges in revenue growth and profitability.
What's in the News
- Auditor KPMG expressed doubts about Synlait Milk’s ability to continue as a going concern in its latest annual report. (Annual Report, Sep 28, 2025)
- Abbott Laboratories is reportedly in talks to purchase Synlait’s Pokeno factory, a facility focused on plant-based milk products that has been under strategic review. (Key Developments)
- Synlait reviewed its North Island assets as part of a business recovery plan, following high levels of debt and intervention by its major shareholder, Bright Dairy. (Key Developments)
- The Pokeno factory faces operational challenges due to switching between dairy and non-dairy products. This has affected both efficiency and financial viability. (Key Developments)
Valuation Changes
- Fair Value Estimate has risen slightly, from NZ$0.67 to NZ$0.73 per share.
- Discount Rate remains unchanged at 6.90%.
- Revenue Growth projection has fallen slightly, from -3.25% to -3.44%.
- Net Profit Margin is projected to increase marginally, from 1.68% to 1.69%.
- Future P/E Ratio has increased, moving from 17.82x to 19.21x.
Disclaimer
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