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Brokers suggest Fonterra needs to start delivering on earnings expectations to rebuild confidence, while the strategic review is welcomed as an opportunity to simplify the business.

Is a2 Milk a disruptor deserved of a high multiple, or a high risk, one trick pony reliant on a volatile supply chain?

Michael Gable of Fairmont Equities suggests the charts indicate a2 Milk will move higher.

A2 Milk sustained strong growth rates in FY18 but expectations for FY19 have softened because of the increased investment designed to expand the company’s presence in China and the US.

Michael Gable of Fairmont Equities notes that after a long retracement, Bellamy’s appears set for upside once more.

A transition to new infant formula packaging appears to have slowed revenue growth for a2 Milk but brokers believe the share price has over-reacted.

Synlait Milk is moving towards a higher value packaged product as the industry focus remains on the large Chinese infant formula market.

Brokers consider now is an opportune time for investors to take advantage of a2 Milk as the business redoubles its momentum.

Heightened costs in transitioning the Mondelez Grocery business have muddied the outlook for Bega Cheese in FY18/19.

The a2 Milk Co has impressed brokers with its substantial revenue and profit growth at the start of FY18, although projections are considered largely factored in to the stock.