Australia's ALS rises, brokers raise estimates on strong HY results

ALS

15/11/2023 01:31

(Updates with Macquarie research note and shares)
    ** Shares of ALS Ltd  ALQ.AX  rise as much as 4.4% to
A$12.10, their highest level since Aug. 1
    ** Jefferies raises PT on Australia's technical services
provider ALS Ltd  ALQ.AX  to A$13.20 from A$12.80; upgrades
rating to "Buy" from "Hold"
    ** Jefferies estimates FY24 net profit after tax (NPAT) at
A$319 mln ($207.54 mln) while Macquarie estimates A$324 mln,
compared with company's forecast range of between A$310 mln and
A$325 mln
    ** ALS on Tuesday reported H1 FY24 underlying continuing
NPAT of A$158 mln, ahead of its own projection of A$150-155 mln
    ** Jefferies upgrades FY25 and FY26 NPAT forecasts by 3% and
4%, respectively, incorporating a stronger FY24 as well as
faster-than-anticipated margin improvement in life sciences
division
    ** Macquarie lifts FY24, FY25 and FY26 EPS by 7%, 6% and 7%,
    respectively
  
    ** Six of 9 analysts rate the stock "Buy" or higher, 3
"Hold"; median PT is A$12.80 – LSEG data
    ** Stock down 5.2% this year as of last close
    

($1 = 1.5370 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))