Update shared on 31 Oct 2025
Analysts have maintained their price target for Synlait Milk at $0.73, citing unchanged forecasts and muted expectations for near-term revenue and profitability growth.
What's in the News
- KPMG issued an unqualified opinion, expressing doubt about Synlait Milk's ability to continue as a going concern, during its Annual Report for the period ending July 31, 2025 (Annual Report).
- Abbott Laboratories is believed to be in discussions to acquire Synlait's Pokeno manufacturing facility in New Zealand, which produces plant-based milk products (Key Developments).
- Synlait's Pokeno plant has faced strategic review due to financial viability concerns, with operational inefficiencies cited as a major challenge (Key Developments).
- Synlait's business recovery plan included reviewing its North Island assets after the company faced financial distress and received support from major shareholder Bright Dairy (Key Developments).
Valuation Changes
- Fair Value Estimate remains unchanged at NZ$0.73 per share.
- Discount Rate is steady at 6.90% with no change from previous assessments.
- Revenue Growth forecast remains negative, holding at -3.44%.
- Net Profit Margin projection is virtually flat at 1.69%.
- Future Price-to-Earnings Ratio is stable at 19.21x.
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