0245 GMT - a2 Milk's potential acquisition of a manufacturing facility raises a couple of significant questions for Citi analyst Sam Teeger. He points out that the dual-listed dairy company ended its last fiscal year with A$931 million of net cash on its balance sheet, and wonders what capital management might look like post-acquisition. He is also interested to discover what the market might think of a manufacturing acquisition to obtain more China-label slots, when buyers appear to be shifting to higher-margin English-label products. Citi has a buy rating and A$7.04 target price on a2's Australia-listed shares, which are up 1.7% at A$4.89. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
November 17, 2024 21:45 ET (02:45 GMT)
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