The second half has started strongly with the company’s hire contract wins up 28% versus pcp in the first two months of 2021. As a result management has upgraded guidance by around 8%. Morgans lifts the target to $0.53 from $0.50 and retains the Add rating.
The broker believes the outlook remains positive with record new hire contracts won over the past 6-9 months and a strong pipeline of opportunities. In addition, the stock offers an attractive yield.
Sector: Capital Goods.
Target price is $0.53.Current Price is $0.37. Difference: $0.16 – (brackets indicate current price is over target). If ACF meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges – negative figures indicate an expected loss).
