Macquarie cuts ALS PT, earnings view for Australia's on bleak forecast

ALS

20/09/2024 04:10

** Macquarie cuts technical services provider ALS Ltd's
 ALQ.AX  price target and earnings estimate on weak HY forecast
    ** Macquarie cuts ALS's PT by 7% to A$15, reduces FY25-27
EPS estimate by 9%, 7%, and 7%, respectively
    ** However, ALS shares were up 1.9% at A$13.92
    ** Shares fell 8.6% on Thursday, marking their worst day in
more than 4 years as it expected a 5% reduction in its HY
underlying net profit after tax (NPAT)
    ** Macquarie analysts expect ALS's exploration cycle to show
recovery in CY25 after 2 down years, supported by U.S. gold
price, copper price and gradually improving economic activity
    ** Analysts at Morningstar cut FY25 NPAT forecast by 5% to
A$295 mln, but saw limited longer-term implications despite the
guidance downgrade
    ** ALS stock up 8.3% YTD 
 

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