FY20 net profit was slightly ahead of UBS estimates. The company has reiterated recent commentary regarding trading and provided no formal FY21 guidance.
UBS notes the company has already reduced its global personnel by -15%, which indicates it is preparing for sharply lower activity levels, as witnessed in April and into May.
The broker still forecasts FY21 earnings (EBIT) to decline -26%. ALS has is taken $90m in goodwill impairments across the Latin American life sciences and industrial businesses, related to the pandemic and depressed oil markets.
Neutral rating maintained. Target rises to $7.30 from $6.70.
Sector: Commercial & Professional Services.
Target price is $7.30.Current Price is $7.19. Difference: $0.11 – (brackets indicate current price is over target). If ALQ meets the UBS target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).