Brokerages cut Aussie co ALS's PT, earnings outlook on weak forecast

ALS

20/09/2024 05:56

(Adds comment from Jarden note, updates share moves)
    ** Brokerages slash PT and outlook for technical services
provider ALS  ALQ.AX  on weak H1 forecast
    ** Macquarie slashes PT by 7% to A$15, reduces FY25, 26 and
27 EPS estimates by 9%, 7% and 7%, respectively
    ** Expects co's exploration cycle to show recovery in CY25
after 2 down years, supported by a gradually improving economic
activity post Fed's rate cuts
    ** Morningstar cuts FY25 net profit after tax (NPAT)
forecast by 5% to A$295 mln ($201 mln), sees limited longer-term
implications despite outlook downgrade
    ** Jarden lowers PT to A$14.20 from A$14.90, sees 7% decline
in H1 core NPAT and 1% drop in FY25 core NPAT
    ** ALS up 2% at A$13.940
    ** Stock dropped 8.6% in its worst day in more than 4 years
on Thursday as co expected a 5% reduction in HY underlying NPAT
    ** Stock gains 8.3% YTD

($1 = A$1.4671)

 (Reporting by Ayushman Ojha in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))