A2 Milk Co Ltd's stock soared 5.11% during intraday trading on Tuesday, showing strong investor interest in the dairy company.

The surge follows analyst commentary suggesting a special dividend from a2 Milk may be coming sooner than expected. According to Citi, the company has signaled readiness to pay a NZ$300 million special dividend once it receives regulatory approvals for China label infant milk formula produced at its Pokeno facility in New Zealand. The amendment process is currently underway and progressing well, potentially allowing for the dividend before the FY 2026 results.

Citi analysts view the special dividend as the next catalyst for a2 Milk's stock and have maintained a buy rating while raising their price target to A$10.55 per share.