The A2 Milk Company Ltd (ASX: A2M) share price is pushing higher on Monday.
In afternoon trade, the infant formula company's shares are up almost 2% to $5.50.
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Can the A2 Milk share price keep rising?
As far as one broker is concerned, the A2 Milk share price could have a lot further to run from where it trades today.
According to a recent note out of Bell Potter, its analysts have responded to the company's half year results by retaining their buy rating and lofty $7.70 price target on its shares.
Based on the current A2 Milk share price, this implies potential upside of 40% for investors over the next 12 months.
What did the broker say?
Bell Potter has run the rule over the company's half year results and was pleased with what it saw. All in all, this appears to support its view that A2 Milk's adjusted net profit can double in FY 2024 from FY 2021's levels.
The broker continues to forecast an adjusted net profit after tax of NZ$167.8 million in FY 2024. This will be up from NZ$80.7 million in FY 2021.
Commenting on the result, Bell Potter said: "Our Buy rating remains unchanged. We saw plenty to like in this result: (1) growth in stage 1 market share in the MBS [mother and baby store] channel from 2.1% to 2.5% (indicative of new customer recruitment); (2) a beat in China direct channels sales in 1H22 and a closer alignment of sell-in and sell-out levels in 2Q22; (3) reinvestment of outperformance into marketing, to support FY23-24e revenue growth; and (4) progress on articulating a margin capture strategy at MVM [Mataura Valley Milk]."
All in all, the broker appears to believe now could be the time to make a patient investment in this former market darling.
