ALQ – Macquarie rates the stock as Outperform

ALS has closed out the year at the top end of its net profit guidance range, with the $264m achieved reflecting a 42% increase on the previous year. Macquarie notes a key theme of the company’s results was strong ongoing cost and supply chain management.

With price increases sticking, the broker highlights ALS has a good line of sight over growth in the coming year which includes increasing capacity in geochem 10-15%, and a 6-7% price improvement as demand remains strong.

The Outperform rating is retained and the target price decreases to $14.50 from $14.70.

Sector: Commercial & Professional Services.


Target price is $14.50.Current Price is $12.01. Difference: $2.49 – (brackets indicate current price is over target). If ALQ meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).



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