Morningstar hikes PT and EBITDA forecasts for ALS on stronger growth expectations

ALS

30/09/2022 03:31

** Morningstar increased testing services provider ALS Ltd's
 ALQ.AX  fair value estimate by 6% to A$6.75, retains
uncertainty rating of 'medium'
    ** Increases FY23 and FY24 EBITDA forecasts for life
sciences segment by 12% to A$324 million ($210.54 million) and
25% to A$363 million, respectively 
    ** Brokerage increases its earnings-per-share forecasts for
FY23 and FY24 for co by 4% and 12% to A$0.55 and A$0.64,
respectively
    ** Says favourable macroeconomic trends support stronger
growth expectations for key life sciences end-markets than
previously credited
    ** Expects  FY27 revenue to be A$2.8 billion, a more
conservative five-year organic compound annual growth rate
closer to 5% on expectations of a material pullback in
commodities from around FY26
    ** Five of nine analysts rate the stock "buy" or higher,
four "hold" and none "sell" or lower; their median PT is A$13.15
– Refinitiv data
    ** Stock has fallen 21.4% this year, as of last close 
($1 = 1.5389 Australian dollars)
 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))