Analyst Note| Mark Taylor |
We increase our fair value for no-moat materials testing specialist ALS by 7% to AUD 5.90. Time value of money is a material driver, but near-term earnings upgrades assist. We increase our fiscal 2022 underlying EPS forecast by 16% to AUD 0.50. We also increase our fiscal 2022 DPS forecast by 15% to AUD 0.30, assuming a 50% payout ratio. This equates to a modest partially franked 2.4% yield at the current price.