ALS' (ASX:ALQ) expected improvement in sampling flows through the second half of fiscal 2025 and further improvement in fiscal 2026 could result in an upside to earnings outlook, Jarden Research said in a note Tuesday.

The company reported statutory earnings of AU$0.26 per share for the first half of the fiscal year 2025, down from AU$0.274 per share a year earlier. Revenue from ordinary activities rose nearly 20% to AU$1.46 billion from AU$1.22 billion a year earlier.

Jarden Research expects a 1% increase in the company's geochemistry sampling volumes and a further 2.8% improvement in fiscal 2026.

"We expect this could be a positive upside risk to our earnings forecasts, all else remaining equal," the investment firm said.

Jarden Research downgraded ALS to neutral from overweight and raised the target price to AU$14.40 from AU$14.25.

The company shares rose over 1% in recent Thursday trade.

Price (AUD): $15.51, Change: $+0.18, Percent Change: +1.14%