The A2 Milk share price is down 7% this last week. Here's why

It's been another bad week for A2 Milk. Let's take a look.

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The A2 Milk Company Ltd (ASX: A2M) share price has struggled through the last 7 days despite no news having been released by the embattled company.

In fact, the last time the market heard price-sensitive news from A2 Milk was way back on 10 May.

However, as The Motley Fool Australia reported yesterday, brokers are bearish on A2 Milk.

Since this time last week, the A2 Milk share price has fallen 6.88%. Shares in the company at market close today are swapping hands for $5.96 apiece.

Let's take a closer look.

sad milk drinker, infant formula share price drop, fall, decrease

Image source: Getty Images

What's driving A2 Milk lower?

A2 Milk's shares have been struggling this week for no apparent reason.

However, Credit Suisse analysts did put out a note on A2 Milk yesterday. They have retained their underperforming rating and $5.50 target on A2 Milk's shares.

The analysts cited their belief the Chinese e-commerce market won't improve enough to see its outlook on A2 Milk turn positive.

Credit Suisse's lack of confidence in A2 Milk seemingly echoes that of A2 Milk itself.

The last time we heard price-sensitive news from the company was months ago, when it downgraded its own guidance for the fourth time.

Perhaps understandably, the A2 Milk share price sank 13.1% following the downgrade's release.

The company's original guidance for the 2021 financial year was revenues of NZ$1.73 billion.

Now, A2 Milk has told the market it expects to bring in between NZ$1.2 billion and NZ$1.25 billion through the 2021 financial year.

A2 Milk share price snapshot

It likely doesn't come as a surprise that the A2 Milk share price has been struggling lately.

It has fallen 48% since the start of 2021. It's also currently 69% lower than it was this time last year.

The company has a market capitalisation of around $4.4 billion, with approximately 742 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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