Shares of ALS Ltd [ASX:ALQ] are the best ASX performers today. They are up 8.06% at time of writing. Shares have gone from $7.20 yesterday to $7.775 today, and have increased over 15% in value since the beginning of the month.
Why did he ALS Share Price increase?
Credit Suisse has upgraded ALS Ltd shares from ‘neutral’ to ‘outperform’ rating. There are expectations that, as mine exploration recovers, ALS’ laboratory services will be in higher demand by gold miners.
The Australian Financial Review also reports that Citi analysts have increased their share price target from $6.90 up to $8.15 and have kept the company´s rating as a ‘buy’.
ALS is a testing, inspection, certification and verification company servicing multiple industries around the world. ALS is based in Brisbane, Australia and employs 12,000 staff in over 70 countries. ALS initially focused on mineral exploration, but in the last four decades has expanded to include different market sectors like agriculture, aerospace and defence, construction, and food services, among others.
What’s next for ALS Shares?
According to S&P Global, in its Australia Mining by the Numbers report, Australia is showing recovery signs this year. There is rising activity in exploration and drilling, especially into gold and lithium. As it said:
‘Financing in the March quarter soared 128% year over year, from US$278.5 million in the 2016 first quarter to US$634.4 million in the first quarter of 2017. Financing for the second half of 2016 was also up, by 201% compared to the same half in 2015, increasing to US$1.8 billion from under US$598 million.
Drilling activity also continues to surge, reaching its highest level in the March 2017 quarter since at least 2014.’
Things could be looking up for ALS.
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