The a2 Milk Co Ltd (ASX: A2M) share price outperformed the S&P/ASX 200 Index (ASX: XJO) in September.
A2 Milk shares fell 2.7% between market close on 31 August and 30 September. In this same time frame, the ASX 200 plunged 7.3%.
Let's take a look at how the company's shares performed last month.
How did September pan out for the A2 Milk share price?
The A2 Milk share price lifted 5% between 31 August and 2 September before pulling back.
The infant formula company's share price appeared to lift on momentum from its FY22 results released on August 29. Net profit after tax (NPAT) lifted 42.3% to NZ$114.7 million, while revenue jumped 19.8%,
Bell Potter analysts upgraded the company's shares to a buy rating with a $6.35 price target following these results.
Analysts at Bell Potter said:
We upgrade our rating from Hold to Buy. If A2M can execute on its strategy to achieve ~NZ$2Bn in FY26e revenues and EBITDA margins in the teens, then it would imply compound double digit EPS growth through to FY26e.
A2 Milk was the fourth-best performer on the ASX200 on September 2, as my Foolish colleague Brooke reported at the time.
However, on 9 September, A2 Milk shares fell slightly following a bearish broker note from Goldman Sachs. Goldman warned it would be hard for A2 Milk to replicate its strong FY22 results in FY23. Goldman placed a sell rating on A2 Milk shares with a $5.80 price target.
On 12 September, A2 Milk shares climbed nearly 3% on the back of good news out of China. The China Government renewed the registration of A2 Milk's dairy process partner, Synlait Milk Ltd (ASX: SM1) .
In mid-September, Bell Potter released another note maintaining a buy rating on the company's share price with a $6.60 price target.
Perpetual Equity Investment Company Ltd (ASX: PIC) also expressed confidence in A2 Milk in a release on 14 September, revealing it continues to see "material upside" to the A2 Milk share price. Analyst Sean Roger said:
The most pleasing aspect of the result was the strong growth of the China Label infant formula business.
Meanwhile, later in the month, Wilson Asset Management equity analyst Shaun Weick also expressed confidence in the A2 Milk share price. He said:
A2 Milk is always a very topical one. Yeah, we actually have bought some shares coming out of the FY22 result.
Share price snapshot
The A2 Milk share price has fallen 7% in the past year, but it has climbed 8% in the past six months and 2% this week.
For perspective, the ASX 200 has shed more than 5% in the past year.
A2 Milk has a market capitalisation of more than $4 billion.
