It's not just MF.....
Goldman Sachs is forecasting earnings before interest, tax, depreciation and amortisation (
EBITDA) of NZ$662 million in FY 2021. This will be a 19.9% increase on FY 2020’s EBITDA of NZ$552 million.
On the bottom line, it has penciled in earnings per share of NZ$0.63, up 20% from NZ$0.524 a year earlier.
In light of this growth and the recent pullback in the a2 Milk share price, Goldman thinks the company is trading at a very attractive level.
It explained:
“ATM is (currently) trading at an FY21 P/E of 17.9X, a 6% premium to the market compared to its five-year average of a 50% premium.”
On top of that GS projected 20% revenue increase for FY21 is conservative IMHO. I estimate a 25% increase.
As Cgcc points out, it is all about the longer term and ATM outperforming the NZX50 average.
ATM's record in this respect for the last 5 yrs is impeccable. (NZX 50 up about 100%, while ATM up 2400%....NZX is the black line at the foot of this graph.)
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