ALQ – Morgans rates the stock as Hold

By Broker News | More Articles by Broker News

The first half guidance issued at the AGM was slightly below Morgans’ expectations. The broker believes peak commodities-driven growth is now behind the company and the health of the exploration and mining capital raisings remain key to the performance in FY20.

This is helped by record gold prices. While rating the stock highly, Morgans is aware that momentum investors are averse to uncertainty in mining services stocks.

Execution of the M&A strategy in life sciences is now a key driver, although the broker expects this to take 1-2 years to play out. Hold rating maintained. Target is reduced to $7.63 from $7.86.

Sector: Commercial & Professional Services.

Target price is $7.63.Current Price is $7.22. Difference: $0.41 – (brackets indicate current price is over target). If ALQ meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).

Broker News

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →