How did the A2 Milk (ASX:A2M) share price perform in September?

It was a good month for A2 Milk shares….
The post How did the A2 Milk (ASX:A2M) share price perform in September? appeared first on The Motley Fool Australia. –

The A2 Milk Company Ltd (ASX: A2M) share price was on form at long last in September.

The embattled fresh milk and infant formula company’s shares stormed 7% higher. This compares favourably to the S&P/ASX 200 Index (ASX: XJO), which lost a disappointing 2.6% of its value during the month.

Though, it is worth noting that A2 Milk’s shares are still down 45% since the start of the year despite this gain.

Why did the A2 Milk share price surge higher in September?

There were a few catalysts for the strong performance by A2 Milk’s shares in September.

One of those was industry data which revealed that infant formula prices have been stabilising. This appears to have been driven by channel inventory heading in the right direction again.

Another catalyst for the rise in its share price was a broker note out of Citi. According to the note, its analysts have retained their buy rating and $7.20 price target on the company’s shares.

Based on the current A2 Milk share price of $6.38, this still implies potential upside of almost 13% even after last month’s gains.

What did the broker say?

Although Citi suspects that there could be more bad news on the horizon for the company, its analysts feel that any weakness in the A2 Milk share price could be greeted with a takeover approach.

Citi has touted a takeover approach of ~$7 per share, which is in line with comparable acquisition multiples.

While this would be positive news for investors that bought in at its recent lows, longer term shareholders will no doubt be hoping the company isn’t taken over at that price. After all, A2 Milk’s shares are down by almost 70% since July 2020.

The post How did the A2 Milk (ASX:A2M) share price perform in September? 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

These were the best performing ASX 200 shares last week

Top brokers name 3 ASX shares to buy today

Here’s why the A2 Milk (ASX:A2M) share price is rising again today
ASX 200 (ASX:XJO) midday update: Beach shares jump, a2 Milk rises

Here are the top 10 ASX shares today

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!