While the stock is priced for a recovery in geochemistry Credit Suisse finds little evidence this is occurring. The focus at the result is likely to be on the volume growth in geochemistry and continued margin improvement in life sciences.
The broker estimates the share price has already priced moderate sample volume growth in the second half of FY20 and, given the history of volatility at results announcements, the rating is lowered to Neutral from Outperform.
Target is steady at $8.40. The company will report its FY20 first half results on November 19.
Sector: Commercial & Professional Services.
Target price is $8.40.Current Price is $8.24. Difference: $0.16 – (brackets indicate current price is over target). If ALQ meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
