Looks grim - next stop A$5.30 if it closes below A$7.50 at the close this afternoon on ASX?
Meanwhile, another broker (previously positive on A2M) has downgraded its recommendation and valuation :
https://www.fool.com.au/2021/04/22/w...ear-low-today/
According to a note out of Morgans, the broker has downgraded a2 Milk’s shares to a hold rating from add and slashed the price target on them by almost 20% to $8.34.
The broker made the move after its research indicated that prices in China are not improving and retailers in the local market are discounting inventory ahead of use by dates. Morgans fears that its excess inventory could be a bigger problem that it previously anticipated.
Based on this, the broker believes that a2 Milk is unlikely to achieve its guidance for FY 2021. This would be bitterly disappointing given how the company has downgraded its guidance numerous times since it was first given to the market.