Update shared on 01 Dec 2025
Fair value Increased 9.55%Analysts have raised their price target for ALS from $20.51 to $22.47, citing updated forecasts of improved profit margins and a lower discount rate.
What's in the News
- ALS Limited revised its earnings guidance for fiscal year 2026, now projecting 6% to 8% organic revenue growth, an increase from the previous forecast of 5% to 7%, and continued margin improvement (Key Developments).
- The company announced an ordinary interim dividend of 19.4 cents per share, partially franked to 30%, reflecting a 2.6% increase compared to the prior corresponding period. The dividend payout ratio stands at 55% of H1 FY26 underlying NPAT and is payable on 17 December 2025 (Key Developments).
Valuation Changes
- The Fair Value Estimate has increased from A$20.51 to A$22.47, indicating a higher consensus price target for ALS.
- The Discount Rate has decreased slightly from 7.12% to 7.08%, reflecting an improved outlook or lower perceived risk.
- The Revenue Growth Forecast has been revised downward slightly, from 7.26% to 7.13%.
- The Net Profit Margin has risen moderately, moving from 12.15% to 12.51%.
- The Future P/E Ratio has increased from 27.13x to 30.48x, signaling higher expected earnings multiples.
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