OUR QUEST IS NOT TO BE BULLISH OR BEARISH, BUT TO CORRECTLY ASSESS FUTURE TRENDS

Citi rates A2M as Buy

a2 Milk Company is benefiting from favourable demographic policy, highlights Citi, pointing to China’s proposed “childbirth-friendly society” initiatives within the draft 15th Five-year Plan.

The broker sees expanded maternity insurance coverage, guaranteed maternity leave and broader childcare subsidies as supportive for infant formula demand.

Policies encouraging fertility treatments and family housing incentives are considered positive for both infant and senior nutrition categories.

While the report concedes previous measures produced limited success, a greater policy focus on fertility rates is considered a sales tailwind for the company.

Target $10.55. Buy.

Bell Potter rates AVR as Speculative Buy

Anteris Technologies continues to advance DurAVR toward approval, with Bell Potter highlighting the opening of the US Investigational Device Exemption and a US$320m capital raise.

DurAVR is a transcatheter aortic valve replacement (TAVR) device to treat severe aortic stenosis.

The broker notes the funding round has left incoming investors with 57% ownership, while estimated cash at December 31 reaches around US$313m.

The analyst expects first US patient enrolment in the approval study before the June quarter ends, with around 80 global trial sites involved.

Bell Potter considers US-based Medtronic’s $90m placement a validation of DurAVR technology and potential strategic pathway toward future acquisition interest.

Bell Potter raises its target price to $13.00 from $10.00 and retains a Buy (Speculative) rating.

Citi rates WDS as Neutral

Further details from last week’s research by Citi on Woodside Energy show the broker raised its target price to $30 from $28 while retaining a Neutral rating.

The following is a summary of the broker’s research.

Citi compares the potential implications for Woodside Energy and Santos from further supply disruptions stemming from the US/Israel-Iran conflict.

While both companies benefit from elevated crude prices, Woodside is more leveraged to spot LNG pricing, explains the broker. 

Santos has greater oil exposure through its contracted LNG portfolio and liquids sales, which account for around 90% of total sales.

The broker estimates the Woodside share price implies oil of around US$65/bbl, compared with US$59/bbl for Santos.