FY19 net profit was in line with Credit Suisse estimates. Revenue growth occurred across all segments and margins improved in life sciences for the first time in six years.
Nevertheless, as volumes in the geochemical business slowed in the second half management is cautious on the outlook. Management also expects volumes to be flat in the first half of FY20 and remains hopeful for growth in the second half.
Neutral rating maintained. Target is reduced to $7.40 from $8.00.
Sector: Commercial & Professional Services.
Target price is $7.40.Current Price is $7.18. Difference: $0.22 – (brackets indicate current price is over target). If ALQ meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
