[ET Net News Agency, 23 July 2020] Goldman Sachs lifted its target price for China
Mengniu Dairy (02319) to HK$36 from HK$35.6 and maintained its "buy" rating.
The research house said Mengniu outperformed Yili and the dairy industry on liquid milk
sales recovery. Goldman believes this is coming from accelerating industry consolidation
and Mengniu's POS expansion further into low tier cities and county areas.
In addition, Goldman expects the premiumization trend to continue with high-end UHT
(ultra-high temperature) milk and yogurt outperforming. For 2H, it expects Mengniu to
reach 50bps margin expansion. (KL)