Acrow Formwork and Construction Services is seeing continued strength in the civil construction formwork markets across Australia. Management upgraded guidance for FY23 earnings and profit due to a positive mix shift towards higher margin hire revenue.

A strong 1Q update and the upgraded guidance shows ongoing strong momentum in the business, according to Morgans. Forecasts for FY23-25 earnings (EBITDA) increase by between 4-6% and the target rises to $0.84 from $0.80. Add.

Sector: Capital Goods.

Target price is $0.84.Current Price is $0.53. Difference: $0.31 - (brackets indicate current price is over target). If ACF meets the Morgans target it will return approximately 37% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena