Brokerages raise earnings estimate for Australia's ALS on commodities boost

ALS

18/05/2026 19:41

** Morningstar and Jefferies upgrade earnings estimates for ALS ALQ.AX after the materials testing firm logged a 24.4% jump in FY26 net profit attributable

** Jefferies raises EPS estimate by 1% and 7% for fiscals 2027 and 2028, respectively; lifts price target to A$24.4 from A$23 and maintains "hold" rating

** Brokerage calls FY26 result "solid", with 2% NPAT beat led by commodities segment

** Says explorations volumes are expected to ramp up in FY27 to support company; positive commodity price environment in gold and copper should continue to support exploration spend

** Morningstar upgrades EPS estimate by 4% for fiscal 2027

** Also retains fair value estimate of A$16.7 vs current share price of A$21.83

** Says current price remains "overvalued", with the market crediting too much earnings growth from commodities in the long term

** Shares down nearly 1% YTD

 (Reporting by Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))