Up 13% in 2 weeks: Has the A2 Milk (ASX:A2M) share price got further to climb?

Can A2 Milk shares keep climbing after a recent share price run?
The post Up 13% in 2 weeks: Has the A2 Milk (ASX:A2M) share price got further to climb? appeared first on The Motley Fool Australia. –

The A2 Milk Company Ltd (ASX: A2M) share price has had a pretty nice fortnight or more after a year most of its shareholders might like to forget. A2 shares have been one of the worst-performing shares on the S&P/ASX 200 Index (ASX: XJO) in 2021 so far.

The company last topped out at $20.05 a share back in August last year. Since that high, it has more or less been downhill for the company ever since. A series of earnings guidance downgrades and ongoing issues at A2 Milk have seen investors bail out of A2 shares. The company reached a new 52-week (and multi-year) low of $5.04 by the middle of last month – a fall of close to 80% from last year’s highs.

But perhaps the A2 share price has finally found a bottom. In the fortnight or so since finding those new lows, the A2 share price has rallied considerably. A2 shares are today going for $5.72 apiece, which is a good 13.5% higher than the $5.04 low that we saw in mid-May.

Got milk?

Why this sudden reversal of sentiment regarding A2 Milk? Well, as the Fool discussed on Monday, it might have something to do with the changing face of China’s birth control regulations. Once famous for the ‘one-child policy’, the Chinese government has now embraced the idea of a ‘3-child policy’, mostly as a measure to counter China’s rapidly ageing population.

More births in China means more mouths to feed – and A2 Milk infant products have historically been a favourite choice of Chinese parents. Well, at least that’s what the markets seem to be thinking on this matter, which might have substantially contributed to the shares’ revaluation from the market over the past fortnight.

After this ‘recovery rally’ of sorts, shareholders might be wondering today if the A2 share price has even further to climb from here.

Where to next for the A2 Milk share price?

Well, as my Fool colleague James Mickleboro reported last month, one broker that is optimistic about A2 shares is UBS. The broker retained its ‘buy’ rating on A2 Milk, with a 12-month price target of $12.50 a share. UBS reckons A2 is dealing with its inventory issues well and is placed to recover from here. Only time will tell if this does come to pass. No doubt shareholders have their fingers crossed.

The post Up 13% in 2 weeks: Has the A2 Milk (ASX:A2M) share price got further to climb? appeared first on The Motley Fool Australia.

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!