Citi flags positive a2 Milk read-through from Synlait result; rates 'Buy'

** Shares of New Zealand's a2 Milk ATM.NZ rise as much as 3.1% to NZ$8.55, their highest level since September 16

** Citi said comments in New Zealand dairy processor Synlait's SML.NZ FY26 result provided another positive datapoint for a2 Milk

** Brokerage notes Synlait's September production was tracking in line with or ahead of plan across several key product categories

** Citi said Synlait's production plan attainment improved to 103% in 2H26 from 90% in 1H26, suggesting a2 Milk's FY27 volume growth should increasingly reflect underlying consumer demand

** Adds, next catalyst for a2 Milk will be its AGM on November 19

** Rates ATM "Buy", with target price of A$6.65 per share for ASX-listed shares

** New Zealand-listed stock down 17.5% this year, including the day's move