ALS has introduced first half guidance for net profit of $115-125m, ahead of UBS estimates. The broker increases cash net profit forecasts by 7%. The company is experiencing growth across all key units. Geochemistry is benefiting from strong mineral exploration.
ALS has also acquired an additional 49% stake in pharmaceutical company, Nuvisan which will allow it to expand its pharmaceutical testing offering. UBS retains a Neutral rating and raises the target to $13.00 from $12.25.
Sector: Commercial & Professional Services.
Target price is $13.00.Current Price is $12.62. Difference: $0.38 – (brackets indicate current price is over target). If ALQ meets the UBS target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
