https://www.stuff.co.nz/business/125...arket-dries-up
Forbar cuts valuation to $7.50.
While a2 Milk had a number of redeeming features, including a strong cash position and a highly-regarded brand, the hit to profits and future growth “has been rapid and painful,” the analysts said.
The company was also facing risks from a lower Chinese birth rate, down 15 per cent in 2020, and increased competition, the analysts said.
“There are many unknowns, with recent announcements a stark reminder visibility is low and there is a high margin of error in earnings forecasts,” they said.