ALS Ltd (ASX: ALQ) is an ASX industrials stock that has already flown 40% higher in 2025.
In fact, it has repeatedly hit all-time highs this year.
It recently gained attention from a leading fund manager in the last couple of months thanks to its organic revenue growth.
For context, the S&P/ASX 200 Industrials (ASX: XNJ) index is up roughly 12% in the same period.
The company is one of the world's largest laboratory testing, inspection, certification, and verification businesses. It operates from around 350 sites across 65 countries.
Despite already rising significantly in 2025, fresh guidance from the team at Morgans suggests its growth is going to continue.
Let's see what the broker had to say.
Exploration poised to accelerate
According to the broker, the company is set to increase its exploration activity.
Morgans said its proprietary raisings data indicates that geochemistry sample volumes will be trending up +20-30% in November which will be a key positive catalyst for the stock.
It also forecasts FY26 Commodities revenue to grow +12% (from +10%) as price lags volume and downstream (metallurgy) lags upstream (geochemistry).
This is despite a sharp rise in volumes.
In FY27, the broker forecasts +20% revenue growth in Commodities (from +12%).
This sees our FY26 NPAT forecast largely unchanged (+1-2%) but our FY27-28 forecasts rise by +7-8%.
Updated price target
Based on the updated forecast from Morgans, it has upgraded its target price from $20.00 to $24.60.
Based on Monday's closing price of $21.63, this indicates an upside of 13.73%.
It seems Morgans is more optimistic on this ASX industrials stock compared to valuations from other brokers.
Bell Potter currently has an "underweight" rating and price target of $19.70, suggesting it is already trading close to or even above fair value.
Elsewhere, TradingView has a 12 month price target of $19.74 and online brokerage platform Selfwealth rates this ASX industrials stock as "overvalued" by approximately 10%.
