Recommendation We initiate coverage with a buy recommendation and price target of $0.091 ps. The near term outlook is positive with a number of catalysts to drive growth in FY19. They include: MKM have identified 25 immediate opportunities to upsell the combined offering. Long term exclusive licenses, long term revenue growth, low capex requirements and forecast NPAT. Synergies will be a good source of growth and margin expansion. ALC is trading on a FY19E EV/Rev of 2x. We believe this is a steep discount to its embedded contract book and forward recurring earnings quality.
ALC Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
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