Synlait Milk Can't Shake Loose Bear Despite Asset Sale -- Market Talk

Dow Jones10-07

2347 GMT - UBS sticks with its sell call on Synlait Milk, despite its positive view of the New Zealand-based dairy company's sale of its North Island assets to Abbott for NZ$307 million. It gives Synlait a robust balance sheet and reasonable earnings base in FY 2027, UBS says. Still, Ebit that year is lower than UBS expected due to reduced Ingredient margins. "While Synlait still trades at a 34% discount to book value for a business with hard assets and good manufacturing capability, a further re-rating seems unlikely," analyst Marcus Curley says. UBS says Synlait's return on invested capital is likely to remain below the weighted average cost of capital over the next five years. Synlait's stock is up 36% from August's low but down some 43% over two years. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

October 06, 2025 19:47 ET (23:47 GMT)

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2573982327?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-10-07 07:47","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2573982327","market":"us","top_or_hot":-1,"title":"Synlait Milk Can't Shake Loose Bear Despite Asset Sale -- Market Talk","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     2347 GMT - UBS sticks with its sell call on <a href=\"https://laohu8.com/S/SMLKF\">Synlait Milk</a>, despite its positive view of the <a href=\"https://laohu8.com/S/NZERF\">New Zealand</a>-based dairy company's sale of its North Island assets to Abbott for NZ$307 million. It gives Synlait a robust balance sheet and reasonable earnings base in FY 2027, UBS says. Still, Ebit that year is lower than UBS expected due to reduced Ingredient margins. \"While Synlait still trades at a 34% discount to book value for a business with hard assets and good manufacturing capability, a further re-rating seems unlikely,\" analyst Marcus Curley says. UBS says Synlait's return on invested capital is likely to remain below the weighted average cost of capital over the next five years. Synlait's stock is up 36% from August's low but down some 43% over two years. (david.winning@wsj.com; @dwinningWSJ) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  October 06, 2025 19:47 ET (23:47 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Synlait Milk Can't Shake Loose Bear Despite Asset Sale -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSynlait Milk Can't Shake Loose Bear Despite Asset Sale -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-10-07 07:47</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     2347 GMT - UBS sticks with its sell call on <a href=\"https://laohu8.com/S/SMLKF\">Synlait Milk</a>, despite its positive view of the <a href=\"https://laohu8.com/S/NZERF\">New Zealand</a>-based dairy company's sale of its North Island assets to Abbott for NZ$307 million. It gives Synlait a robust balance sheet and reasonable earnings base in FY 2027, UBS says. Still, Ebit that year is lower than UBS expected due to reduced Ingredient margins. \"While Synlait still trades at a 34% discount to book value for a business with hard assets and good manufacturing capability, a further re-rating seems unlikely,\" analyst Marcus Curley says. UBS says Synlait's return on invested capital is likely to remain below the weighted average cost of capital over the next five years. Synlait's stock is up 36% from August's low but down some 43% over two years. (david.winning@wsj.com; @dwinningWSJ) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  October 06, 2025 19:47 ET (23:47 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"UBS","symbol_name":"瑞银","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2573982327","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2573982327","pubTimestamp":1759794420,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"2347 GMT - UBS sticks with its sell call on Synlait Milk, despite its positive view of the New Zealand-based dairy company's sale of its North Island assets to Abbott for NZ$307 million. It gives Synlait a robust balance sheet and reasonable earnings base in FY 2027, UBS says. Still, Ebit that year is lower than UBS expected due to reduced Ingredient margins. \"While Synlait still trades at a 34% discount to book value for a business with hard assets and good manufacturing capability, a further re-rating seems unlikely,\" analyst Marcus Curley says. UBS says Synlait's return on invested capital is likely to remain below the weighted average cost of capital over the next five years. Synlait's stock is up 36% from August's low but down some 43% over two years. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"UBS":"瑞银","BK4534":"瑞士信贷持仓","IE0034235071.USD":"PINEBRIDGE EUROPE RESEARCH ENHANCED EQUITY \"A\" (USD) ACC","BK4118":"综合性资本市场","BK8065":"包装食品与肉类","SML.NZ":"Synlait Milk Limited Ordinary Shares","LU1829250122.USD":"高盛欧洲核心股票组合Acc","BK4588":"碎股","BK4585":"ETF&股票定投概念"},"translate_title":"尽管出售资产，Synlait Milk仍无法摆脱宽松的熊市——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SML.NZ":1.5,"UBS":0.7},"content_text":"2347 GMT - UBS sticks with its sell call on Synlait Milk, despite its positive view of the New Zealand-based dairy company's sale of its North Island assets to Abbott for NZ$307 million. It gives Synlait a robust balance sheet and reasonable earnings base in FY 2027, UBS says. Still, Ebit that year is lower than UBS expected due to reduced Ingredient margins. \"While Synlait still trades at a 34% discount to book value for a business with hard assets and good manufacturing capability, a further re-rating seems unlikely,\" analyst Marcus Curley says. UBS says Synlait's return on invested capital is likely to remain below the weighted average cost of capital over the next five years. Synlait's stock is up 36% from August's low but down some 43% over two years. (david.winning@wsj.com; @dwinningWSJ) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  October 06, 2025 19:47 ET (23:47 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2573982327","isCrawlerRequest":true}