Australia's ALS well-positioned to benefit from structural commodity demand - Jefferies

ALS

15/11/2022 24:17

** Jefferies says testing services provider ALS Ltd  ALQ.AX 
is well-positioned to benefit from structural commodity demand
as the market leader in geochemistry testing
    ** Says it expects exploration volumes to continue to
increase in the near term, as the capital from junior mining
equity raising is deployed
    ** Says a positive commodity price environment will continue
to support equity raisings & exploration spend
    ** Brokerage further says co's FY23 NPAT guidance of A$300
mln to A$320 mln is unusually broad but may be prudent given the
uncertain macro conditions
    ** Given the dearth of equity raisings & uncertain near-term
outlook for Commodities, we downgrade our FY24-25 numbers by
4-6% at both EBIT & NPAT- Jefferies 
    ** Six of nine analysts rate the stock "buy" or higher,
three "hold" and none "sell" or lower; their median PT is
A$13.15 – Refinitiv data
    ** Stock has fallen 7.7% this year as of last close 
 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))