Australia's ALS slumps as analysts cut earnings view; Jefferies slashes PT

ALS

30/05/2023 01:57

(Updates with share movements and comments from Morningstar)
    ** Shares of testing services provider ALS Ltd  ALQ.AX  drop
as much as 6.2% to A$11.020, posting their biggest intraday pct
fall since March 7
    ** Jefferies sees uncertainty over how ALQ can turn around
Nuvisan as well as other acquisitions, which are weighing down
margins, and cuts PT to A$12.8 from A$13.5
    ** Remain on the sidelines given the threat operating
leverage presents to estimates - Jefferies
    ** Jefferies lowers FY24 NPAT core by 5.6% to A$305 mln 
    ** Jefferies sees a 20% fall for FY24 volumes in
Geochemistry 
    ** Analysts at Morningstar cut their FY24 and FY25 EPS
forecasts for ALQ by 10% and 9%, respectively 
    ** Shares hit their lowest level since March 20, and on
track to record a third consecutive session of losses, if trend
holds 
        ** Stock among top losers on the benchmark ASX 200 index
 .AXJO 
    ** ALS stock down nearly 4% YTD    


 (Reporting by Echha Jain and Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))