Citi positive on a2 Milk following Nestle 3Q26 update; reiterates Buy

By Reuters News

** Citi says Nestle's NESN.S 3Q26 results provide an incremental positive read-through for a2 Milk ATM.NZ

** Says the results show that foreign infant formula brands can return to growth relatively quickly after a major supply disruption, particularly when supported by product innovation

** Brokerage maintains its "buy" rating on a2 Milk with a target price of A$7.40

** Citi also says its review of recent CBEC pricing data and port data was broadly favourable for a2 Milk ahead of the company's AGM on November 19

** Stock down over 16% this year, as of last close

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.