a2 Milk (ASX:A2M, NZE:ATM) China label supply is starting to return for consumers, specifically across the MBS storefronts, based on the firm's customer service advice to consumer posts on social media, Jarden said in a Monday note.

a2 Milk's China Label stock shortages were consistent with management expectations within its mid-April trading update. Negative cereulide test results are available to consumers to ensure trust in the product.

Jarden noted residual uncertainty on residual tail risk of product recall and/or supply chain issues, and catch-up progress raising the downside risk to estimates for the fiscal 2026 second half.

The investment firm retained its neutral rating on A2 Milk with a price target of of NZ$7.36 per share.