The A2 Milk Company Ltd (ASX: A2M) share price added another 1% yesterday, taking it to $7.16 a piece. That means the A2 protein dairy product producer's share price has gained 26% for the last month.
It certainly would be a sight for sore eyes following A2 Milk's share price 'misadventure' over the past year.
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What's been driving the A2 Milk share price higher?
During the past month, there have been two notable announcements from the company. These may have contributed to the recent rally.
Firstly, on 2 July 2021 A2 Milk announced the appointment of Edith Bailey as Chief Marketing Officer. Edith joins the company after spending 14 years with Danone Nutricia Early Life Nutrition, where she was most recently Consumer Marketing Director.
Prior to her time at Danone, Edith held senior marketing roles with Pepsico, Campbell Arnotts and S.C. Johnson & Son.
Commenting on the appointment, Managing Director and Chief Executive Officer David Bortolussi said:
It is essential that we continue to invest in and strengthen the a2 brand to enable us to return to growth in our core business and to capture new opportunities through innovation and new product development.
Acquisition update
Another snippet of information that might be moving the A2 Milk share price needle is the company's update on its Mataura Valley Milk acquisition.
According to the release, the New Zealand Overseas Investment Office has given the thumbs up for A2's proposed acquisition of a 75% interest in the dairy nutrition business. As a result, the transaction is now set to occur with effect from the end of July.
The integration of Mataura is expected to unlock nutritional products manufacturing to A2.
Brokers slap on a buy rating
Finally, investor sentiment may be shifting after a handful of positive perspectives from brokers.
Last week Bell Potter came out with a buy recommendation on the company, adding an A2 Milk share price target of $8.50. In addition to that, Watermark Funds Management chief investment officer Justin Braitling singled out A2 shares as "a strong buy".
