Brokerage Morningstar sees growth for Australia's Monadelphous Group

Monadelphous

04/12/2023 18:24

** Brokerage firm Morningstar upbeat on future revenue
growth of industrial services co Monadelphous Group  MND.AX ,
citing co's A$850 million ($562.36 million) new and extended
contracts for fiscal 2024
    ** "Our A$14.25 fair value estimate for no-moat Monadelphous
stands" - brokerage
    ** Morningstar projects a five-year revenue CAGR of 7.5% to
A$2.6 billion by fiscal 2028, and EBITDA of A$180 million in
that year
    ** Brokerage credits an improved midcycle EBITDA margin of
6.8% going forward, versus fiscal 2023's 5.3% actual
    ** Firm expects easing in skilled labour shortage in future
    ** Six of 11 analysts rate the stock "buy" or higher, three
"hold" and two "sell"; their median PT is A$15.0 – LSEG data
    ** MND was up 5.5% YTD, as of last close


($1 = 1.5115 Australian dollars)

 (Reporting by Adwitiya Srivastava in Bengaluru)
 ((Adwitiya.Srivastava@thomsonreuters.com;))