Silk Logistics' 12% first half earnings increase was a slight beat of Morgans' forecast, driven by 18% revenue growth and -110bps margin contraction. Covid added $1m to costs. If substantial rental costs are excluded, earnings beat the broker by 23%.

The FY outlook implies further solid growth into the second half.

The broker continues to believe that if the company converts potential into proven earnings growth then patient investors should be rewarded, particularly those buying at current attractive multiples.

Add retained, target rises to $3.31 from $3.26.

Sector: Transportation.

Target price is $3.31.Current Price is $2.24. Difference: $1.07 - (brackets indicate current price is over target). If SLH meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena