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).
