Here’s why the A2 Milk (ASX:A2M) share price is rising again today

Here’s what’s happening with the A2 Milk share price today…
The post Here’s why the A2 Milk (ASX:A2M) share price is rising again today appeared first on The Motley Fool Australia. –

The A2 Milk Company Ltd (ASX: A2M) share price has continued its positive run on Tuesday despite the ASX 200 sinking lower.

In afternoon trade, the infant formula company’s shares are up over 1% to $6.07.

This means A2 Milk shares are now up over 13% since this time last week.

Why is the A2 Milk share price rising today?

The A2 Milk share price has been rising on Tuesday following the release of a mixed note out of Citi.

According to the note, the broker has retained its buy rating and $7.20 price target on the company’s shares.

Based on the current A2 Milk share price, this implies potential upside of almost 19% over the next 12 months.

What did the broker say?

The note reveals that Citi believes there could be more bad news looming for A2 Milk. The broker is basing this on the fact that the company has yet to announce its performance rights for its CEO. It feels if things were going better, this would have now been announced.

Citi feels more bad news could weigh heavily on the A2 Milk share price. However, it also suspects that further share price weakness would make the company vulnerable to a takeover in or around the $7.00 per share mark. This is based on comparable acquisition multiples.

And judging by the company’s share price performance today, it appears as though some investors are focusing more on the potential takeover approach instead of the suspected continued underperformance of the company.

What’s next?

Time will tell how A2 Milk is actually performing. However, the good news is that investors won’t need to wait overly long to find out. The company is scheduled to hold its annual general meeting in approximately seven weeks.

All eyes will certainly be on A2 Milk shares that day.

The post Here’s why the A2 Milk (ASX:A2M) share price is rising again today appeared first on The Motley Fool Australia.

Should you invest $1,000 in A2 Milk right now?

Before you consider A2 Milk, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and A2 Milk wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 (ASX:XJO) midday update: Beach shares jump, a2 Milk rises

Here are the top 10 ASX shares today

Here’s why the A2 Milk (ASX:A2M) share price is up 9% in a week
Why this broker sees ~50% upside in the A2 Milk (ASX:A2M) share price
A2 Milk (ASX:A2M) share price falls 3% to 3-month low

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!