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).
