One of the biggest movers on the local share market in the last 12 months has been the a2 Milk Company Ltd (Australia) (ASX: A2M) share price.
Since this time last year the dairy company's shares have more than tripled in value.
Can they go higher?
According to one leading broker they can. A note out the equities desk of Macquarie this morning revealed that its analysts have retained their outperform rating on a2 Milk and increased the price target on its shares to NZ$6.35.
At the current conversion rate this works out to be a price target of $5.79, approximately 6% higher than the current share price.
According to the note, Macquarie's analysts have seen positive industry data which suggests that underlying demand for its products is strengthening.
Furthermore, the bank sees opportunities for the company to expand into other product offerings and markets.
Should you invest?
I agree with Macquarie that a2 Milk is a buy. Although its shares have risen strongly in the last 12 months, I wouldn't let this put you off an investment today.
In my opinion, a2 Milk's shares are still good value considering its current growth profile and would be a great long-term buy and hold investment.
