ALQ – UBS rates the stock as Neutral

ALS’s first-quarter revenues were down -10% versus the June quarter due to covid-19 restrictions.

Going ahead, UBS expects revenue to decline by -9% in the first half led by both life sciences and commodities. In the second half, the broker expects a re-opening recovery and a consequent 5% uplift in life sciences sales. The commodities segment is expected to continue its decline in the second half.

Along with a recovery in life sciences, the broker also anticipates a more supportive macro environment for mineral exploration and has increased its earnings growth forecasts for FY21-23 by 7-8%.

UBS reaffirms its Neutral rating with the target price increasing to $9.50 from $8.03.

Sector: Commercial & Professional Services.

Target price is $9.50.Current Price is $9.49. Difference: $0.01 – (brackets indicate current price is over target). If ALQ meets the UBS target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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 →