Acrow Formwork and Construction Services has received a sales order of $3.7m for Clough Engineering and upgraded FY23 EBITDA by 5% and net profit by 8%.
Morgans believes the upgrade to guidance shows strong momentum in the business and as civil infrastructure activity remains elevated and there are a number of opportunities in the pipeline the growth trajectory remains solid for the longer term.
The broker retains an Add rating and raises the target to $1.03 from $1.00.
Sector: Capital Goods.
Target price is $1.03.Current Price is $0.83. Difference: $0.20 - (brackets indicate current price is over target). If ACF meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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