Morningstar maintains fair value price for Australia's ALS on demand for mineral testing
BUZZ-Morningstar maintains fair value price for Australia's ALS on demand for mineral testing ** Morningstar maintains its fair value estimate on Australia's ALS Limited ALQ.AX at A$16.70 per share
** Investment research firm says recent data supports near-term demand for mineral testing services in Australia; forecasts 15% commodities EBITDA growth in FY27
** Remains cautious on the long-term outlook for co; anticipates rising commodities EBITDA till 2030, after which normalized commodity prices will leave EBITDA flat
** Expects life sciences segment to drive long-term growth on rising demand for environmental, food, and pharmaceutical testing and tighter regulations; forecasts life sciences to contribute 63% of earnings by FY2031
** 11 of 13 analysts rate the stock "buy" or higher, 1 "hold" and 1 "sell" or lower; their median PT is A$26.00 — LSEG data
** Stock down 6.4% for the year
(Reporting by Rudrannsh Mehra in Bengaluru; Editing by Nia Williams)
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