Jefferies upgrades PT, rating on Australia's ALS on strong HY results

ALS

14/11/2023 21:12

** 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"
    ** Brokerage estimates FY24 net profit after tax (NPAT) at
A$319 mln ($207.54 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
    ** Brokerage 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
    ** 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))