Does MM like the ACL Result?

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Question asked 13/08/2022

Does MM like the ACL Result?

Please advise what you think of ACL as well as today's results (10.08.22), which the market clearly doesn't like (so far, at least), and if there is a price or range at which you would enter the stock, including in light of the large upcoming dividend?

Answer

Hi Lee,

By Friday afternoon Australian Clinical Labs Ltd (ACL) had corrected approximately half of the over 12% knee jerk down on Wednesday following the companies report which included a 41c fully franked dividend. This $980mn pathology testing business has a consensus broker target price of only $5.30 which feels about right to us i.e. only 7% higher.

We see better opportunities elsewhere at least until we see fresh developments out of ACL

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Australian Clinical Labs Ltd (ACL)

LAST UPDATED 12/08/2022 15:14

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