Acrow Formwork and Construction Services' full year revenue and underlying earnings were both largely in line with Morgans' expectations, but the broker notes a higher tax rate drove a miss on underlying net profit. 

The broker highlighted strong revenue growth of 19% and 114% in Formwork and Industrial Services respectively, while Commercial Scaffold revenue was down -10%. 

The company is guiding to underlying earnings growth of more than 20% and net profit growth of more than 40% in FY22. Morgans increases earnings per share forecasts by 3%, 5% and 19% through to FY24. 

The Add rating is retained and the target price increases to $0.56 from $0.55. 

Sector: Capital Goods.

Target price is $0.56.Current Price is $0.45. Difference: $0.11 - (brackets indicate current price is over target). If ACF meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena