A2 Milk Co Ltd's stock price surged 5.07% during intraday trading on Friday, marking a significant upward movement for the company's shares.

The sharp rise follows an upgrade by UBS to a buy rating from neutral, with the analyst noting that the stock's more than 30% decline since April appeared excessive. UBS believes the likelihood of further infant formula product recalls is low and stated that earnings risk has moderated as restocking is underway in the critical China market. The firm expects A2 Milk's net profit to double by fiscal year 2030, driven by market share gains from new products and margin expansion from internalized manufacturing.