At its AGM, a2 Milk reiterated its FY21 guidance for revenue growth and operating earnings margin while acknowledging the uncertain environment. The company understands it needs to significantly increase its second-half revenue.

Ord Minnett is not optimistic and does not think the company will meet its FY21 revenue guidance. Accordingly, the broker has reduced its earnings estimates and its target price to $13.20 from $14.20.

The Lighten rating remains unchanged.

Sector: Food, Beverage & Tobacco.

Target price is $13.20.Current Price is $13.70. Difference: ($0.50) - (brackets indicate current price is over target). If A2M meets the Ord Minnett target it will return approximately -4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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