Analyst Julia de Sterke from Morgan Stanley maintained a Buy rating on a2 Milk Company and keeping the price target at A$10.00.
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Julia de Sterke has given his Buy rating due to a combination of factors, including a2 Milk’s strong innovation pipeline and solid medium‑term growth outlook. New product ranges such as Genesis, Kids advanced formulations and seniors offerings are contributing materially to normalized revenue growth, and management sees early signs that prior supply bottlenecks in Stage 1 are easing, which should support renewed user acquisition.
In addition, the company is positioned to benefit from favorable dynamics in the Chinese infant milk formula market, where the e‑commerce led segment is expected to gain share and early‑life formula usage is lengthening as breastfeeding rates decline. a2 Milk targets a meaningful lift in its premium segment share through channel expansion and product upgrades, while a projected recovery in China birth rates from 2026 underpins volume potential; together these support upside versus the current share price and justify a positive recommendation.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a A$10.40 price target.