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Australian Investment Blog

ASX:A2M 03/07/2018

A2 Milk extends partnership, rallies

Stock

A2 Milk (A2M) $10.72 as at 3/07/2018

Event

A2 Milk and Synlait (ASX:SM1) announced the extension of a supply agreement between the two companies lengthening the current agreement by 2 years out to 2023. The deal also increases the product capacity that A2M can derive from Synlait’s supply of baby formula and other milk products over and above the agreement that is already in place. In doing so, the new agreement further increase the ability of A2 Milk to fill the growing demand for their products, particularly in the Chinese market.

A2 Milk (A2M) Chart

A2 Milk

Market Matters Take/Outlook

We like A2M Milk, and believe the valuation is currently justified. There remains a significant level of growth in both market size and market share for A2M. To view our live and active alerts on our portfolio sign up for a free trial today.

By james Carter
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