The A2 Milk Company Ltd (ASX: A2M) share price was a solid performer in the last financial year.
Over the 12 months, the infant formula company's shares rose almost 12% to $4.89.
This compares favourably to the ASX 200 index, which delivered a 9.7% return for the period.
However, despite this positive performance, the A2 Milk share price is still a long way from its former highs.
Back in the middle of 2020, its shares were touching $20. Can it regain its former highs in FY 2024?
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Will the A2 Milk share price reach new highs in FY24?
While you can never rule anything out in financial markets, it seems highly unlikely that A2 Milk shares would be able to climb to previous highs over the next 12 months.
Things were very different for A2 Milk when its shares were nearing the $20.00 mark. At that point, demand was going through the roof after consumers in China started stockpiling infant formula during the pandemic.
Since then, Chinese consumer preferences have shifted and its birth rate has slowed markedly.
In addition, with interest rates rising, growth shares have derated to lower multiples.
Overall, conditions just don't seem to be right for new highs to be reached any time soon. But that doesn't mean its shares can't rise in FY 2024. So, where could its shares be heading?
According to a recent note out of Ord Minnett, its analysts have an accumulate rating and a $7.20 price target on them.
While this is nowhere near its former highs, it is still suggesting a potential upside of almost 50% for investors over the next 12 months. So, shareholders certainly won't be complaining if Ord Minnett is on the money with its recommendation, if you ask me.
