The a2 Milk Company Ltd (ASX: A2M share price is in focus today after the company reported preliminary FY26 results, featuring revenue up more than 12% to about $1.97 billion, even as China infant milk formula (IMF) sales declined due to supply chain disruptions.

What did The a2 Milk Company report?

• FY26 revenue of approximately $1.97 billion, up over 12% year-over-year
• China label IMF sales down around 14% on FY25 after supply chain issues in 4Q26
• EBITDA margin expected at the high end of 14.0% to 14.5% guidance
• NPAT anticipated to be slightly up on FY25, with underlying NPAT also rising
• Cash conversion of about 70%, well above the previous 50% outlook
• Strong sales across other key categories, including English label IMF and liquid milk

What else do investors need to know?

The a2 Milk Company faced several challenges in the China IMF market during the fourth quarter, such as freight issues, production bottlenecks, and new customs requirements, which led to product shortages. Many customers had to temporarily switch to other brands, impacting in-market sales.

Since then, these supply issues have largely been resolved, with stock levels now back in line and increased product flows across major channels. Management is prioritising marketing and sales efforts to win back previous customers and attract new ones in China.

What’s next for The a2 Milk Company?

Investors can expect a further update when the company releases its audited FY26 results and FY27 outlook on 17 August 2026. Management says efforts will continue to recover China label market share while accelerating new user acquisition with retail and distribution partners, supported by stable supply chains.

The business is also focused on maintaining the growth seen in other product categories and driving operational improvements to support ongoing profitability. Investors will be watching for more detail on strategy and guidance next month.

The a2 Milk Company share price snapshot

Over the past 12 months, a2 Milk shares have declined 3%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 3% over the same period.

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The post a2 Milk Company posts double digit FY26 revenue growth despite China supply setback appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

With lots of ASX shares to choose from on the Australian market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are outlined below. Here’s why they are bullish on them:

Genesis Minerals Ltd (ASX: GMD)

According to a note out of Bell Potter, its analysts have retained their buy rating on this gold miner’s shares with a trimmed price target of $9.75. This follows news that Genesis Minerals has delivered a definitive proposal to merge with Vault Minerals Ltd (ASX: VAU). Bell Potter points out that if implemented, the enlarged company will have pro-forma production of 600,000 to 700,000 ounces per annum. The broker is positive on this, noting that acquiring Vault Minerals delivers a materially better capital allocation outcome than the company’s current five-year plan assumes. In light of this, the broker thinks investors should be snapping up shares at current levels. The Genesis Minerals share price is currently trading at $6.03.

Life360 Inc. (ASX: 360)

A note out of Citi reveals that its analysts have retained their buy rating on this location technology company’s shares with an improved price target of $31.95. The broker has upgraded its user growth estimates for FY 2026 on the belief that its growth will trough in the second quarter. Citi expects this to be underpinned by new feature launches and integrations with Uber and Apple Watch, which could support engagement and expand its addressable market. The Life360 share price last fetched $27.79.

REA Group Ltd (ASX: REA)

Analysts at Morgans have retained their buy rating on this property listings company’s shares with a reduced price target of $199.00. According to the note, the broker continues to believe that REA Group is one of the highest quality stocks in the classifieds industry. And while there are concerns that trading conditions could be tough due to Federal Budget changes and higher interest rates, Morgans points out that REA Group has levers to pull to offset this weakness. As a result, the broker feels that recent share price weakness is a buying opportunity for investors. The REA Group share price last traded at $143.67.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Life360 and REA Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Life360, and Uber Technologies. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares edged 2.77% higher and produced total returns, including dividends, of 7% in FY26.    

Here, we review new notes from the experts regarding three ASX 200 shares. 

Let’s take a look.

Life360 Inc (ASX: 360)

The Life360 share price fell 17% to $26.70 on 30 June amid a broader technology sector downturn in FY26.

Chris Savage from Bell Potter has a buy rating on this ASX 200 tech share for FY27.

In a new note last week, Savage said:  

Life360 is our key pick amongst the large tech stocks we cover based on quality, valuation and potential catalysts.

We note the stock looks reasonable value on a 2027 EV/EBITDA multiple of c.23x versus the FY27 EV/EBITDA of Technology One (which has a September year end) of c.26x.

The broker raised its 12-month price target from $33 to $35. 

Savage noted that Life360 will report its 2Q FY26 results on 11 August, and said this may be a catalyst for the share price for three key reasons: 

1. We expect MAU growth to rebound to 4.3m – consistent with 2Q2025 – if not higher (VA consensus is 4.6m) which importantly will imply an exit run-rate of close to 5m given the Android issues which persisted into April and even May; 2. We expect paying circle growth to be strong again at c.155k which is notably above VA consensus of c.135k and even see upside risk to our forecast closer to the 1Q2026 result of 202k; and 3. If paying circle growth is >155k then we see potential for a further upgrade to 2026 revenue and EBITDA guidance as paying circle growth is obviously the key driver of subscription revenue.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price rose 6.67% in FY26 to finish at $90.40 on 30 June. 

James Bills from Shaw and Partners has a hold rating on the market’s largest ASX 200 consumer discretionary share.

Bills explained why on The Bull this week:  

Wesfarmers continues to demonstrate strength through its diversified portfolio of businesses, particularly with solid contributions from retail giants Bunnings and Kmart.

The group’s ability to generate consistent earnings and reinvest capital effectively supports its premium valuation.

Recent updates indicate stable trading conditions, although cost pressures and a softer consumer backdrop may limit near term growth.

While the company remains a high quality industrial with strong management, its current valuation suggests more of a balanced risk-reward profile, which supports a hold stance.

South32 Ltd (ASX: S32)

The South32 share price ripped 34.02% to close out FY26 at $3.90. 

Morgans downgraded its rating on this ASX 200 mining share from accumulate to hold last week.

The broker also cut its 12-month target price from $5 to $4.50.

Morgans said: 

S32 has agreed to sell its entire ali business for total consideration of US$5.6bn (US$4.1bn upfront), and transfer of US$1.2bn closure/rehab liabilities.

Our view on S32’s aluminium sale is genuinely mixed. It leaves S32 a simpler and, in important respects, a better business, but also a smaller and less valuable one.

We reduce our valuation on S32’s ali assets to in line with the agreed Alcoa deal… As a result we update our rating to HOLD (from Accumulate).

 

 

The post Buy, hold, sell: Life360, South32, Wesfarmers shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Wesfarmers. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.