2236 GMT - Forsyth Barr retains a "neutral" call on A2 Milk, despite easing concerns around supply-chain disruptions and its U.S. product recall. It says the ramp-up of the Pokeno plant should materially alleviate supply-chain pressures in FY27. Still, China-label infant milk formula availability remains constrained. "And, with disruptions extending beyond the April/May period where A2 Milk had expected the greatest impact, we see an increasing risk of flow-on effects into FY27 and FY28," analyst Will Twiss says. It's upbeat about A2 Milk's medium-term earnings outlook. But A2 Milk is trading at 26x FY27 EPS. Forsyth Barr's earnings forecasts are also below consensus over the next two years. "The margin of safety is modestly too narrow to justify a more positive investment stance at this stage," it says. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

June 23, 2026 18:36 ET (22:36 GMT)

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