After announcing a strong start to FY22 Acrow Formwork and Construction Services has upgraded FY22 earnings (EBITDA) growth guidance to 25% from 20% and underlying profit growth to 50% from 40%. The Add rating is unchanged.
As a result, Morgans lifts its FY22 estimates and increases its target price to $0.58 from $0.56. Secured hire contracts are considered a good lead indicator to the future performance of the business and these contract wins jumped 51% to $12.8m in the first quarter.
Sector: Capital Goods.
Target price is $0.58.Current Price is $0.45. Difference: $0.13 – (brackets indicate current price is over target). If ACF meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
