ALS shares slide following Jarden downgrade

The news: Shares in testing and verification services business ALS were lower in afternoon trading after investment and advisory group Jarden downgraded its position on the stock from ‘neutral’ to ‘underweight’, saying its price has overshot fundamentals.

The numbers: ALS’ share price had slipped 0.82% to $17.60 at 2:59pm AEST but is up 12.09% over the last month.

Jarden raised its 12-month target price from $14.50 to $15 as it expects ALS’ FY25 earnings result, which will land next Tuesday, to sit at $311 million, within its $310 million to $313 million net profit after tax guidance.

The context: Jarden analysts’ justification for the ALS downgrade include ongoing volatility in flows of commodities sampling, a balance sheet that would preclude expansion via M&A or takeovers, and a share price that already more than reflects potential earnings upgrades ahead.