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ACL: Share Buyback And Cyber Penalty Resolution Will Support Stronger Outlook

Novel Genetic Tests And Digital Tools Will Capture Aging Demand

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ACL
AnalystHighTarget
Not Invested
Published 10 Jul 2025

Update shared on 15 Dec 2025

Fair value Decreased 19%
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AnalystHighTarget's Fair Value
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1Y
-19.5%
7D
-0.4%

Narrative Update on Australian Clinical Labs

Analysts have trimmed their price target on Australian Clinical Labs from approximately A$4.73 to around A$3.85. This reflects slightly higher perceived risk, more moderate valuation multiples, and only modest upgrades to long term growth and margin assumptions.

What's in the News

  • The Board of Directors has authorized a share buyback plan, signalling confidence in the company’s valuation and capital position (company announcement).
  • Australian Clinical Labs has launched a share repurchase program of up to 19,500,000 shares, or about 9.96% of outstanding shares, running through November 11, 2026 (company announcement).
  • The Federal Court of Australia has approved an in principle settlement with the Australian Information Commissioner over the Medlab Pathology cyberattack, with ACL to pay A$5.8 million in civil penalties and A$400,000 towards legal costs by November 7, 2025 (court orders / company announcement).

Valuation Changes

  • Fair Value: reduced noticeably from approximately A$4.73 to A$3.85 per share. This implies a lower intrinsic valuation.
  • Discount Rate: increased slightly from about 6.49% to 6.67%. This reflects a modestly higher required return.
  • Revenue Growth: edged higher from roughly 5.42% to 5.80%. This indicates a small uplift in long term growth expectations.
  • Net Profit Margin: risen marginally from about 5.71% to 5.84%. This suggests a slightly more optimistic view on profitability.
  • Future P/E: declined meaningfully from about 20.88x to 16.49x. This points to a more conservative valuation multiple being applied.

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Disclaimer

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