The A2 Milk Company Ltd (ASX: A2M) share price went up 8% today as shareholders got a boost.
The a2 Milk Company is one of Australia and New Zealand’s largest infant formula producers and the leader in a2-only protein based dairy products. It has operations in New Zealand, Australia, USA and China thanks to key supply and distribution agreements.
Why The A2 Milk Share Price Jumped 8%
The A2 Milk share price climbed 8% thanks to being ‘upgraded’ to a buy rating at UBS. The reason for the upgrade was that the a2 protein dairy company could reach more than 10% of the market share in China by 2025 and UBS also suggested that ASX investors weren’t taking into account the large US opportunity.
The UBS analyst Ben Gilbert said, “A2 Milk has a unique brand with a material long term growth opportunity by penetrating the Chinese market and expanding into the US.”
There’s plenty to like about A2 Milk with growing profit margins, international growth and a strong brand. It has a high valuation, but most good growth shares do these days due to low interest rates.
A2 Milk, along with the rapidly growing ASX shares in the free report below could be worth watching over the next five years or longer.
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