ALQ – Morgan Stanley rates the stock as Equal-weight

Following FY22 results for ALS (in line with guidance), Morgan Stanley assesses management is dealing well with inflationary pressures.

The broker sees upside risk for Geochemistry earnings over the next year, while margin assumptions for Life Sciences are trimmed.

A discount is likely to be maintained for the Commodities business (38% of group revenues), unless investors price commodities as a medium-term structural tailwind, suggests the analyst. The target rises to $13.30 from $13.20. Equal-weight. Industry view: In-line.

Sector: Commercial & Professional Services.

 

Target price is $13.30.Current Price is $12.51. Difference: $0.79 – (brackets indicate current price is over target). If ALQ meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

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