Monadelphous Group's FY21 result missed Morgan Stanley's estimate by a decent clip courtesy covid.

The broker expects input inflation and labour shortages will dog the stock and the company has guided to lower FY22 revenue. 

Morgan Stanley believes these pressures will abate by FY23 and the longer term prognosis is respectable, pending the outlook for the iron ore price.

Equalweight rating retained. Target price falls to $11.20 form $13. Industry view: In-line.

Sector: Capital Goods.

Target price is $11.20.Current Price is $10.09. Difference: $1.11 - (brackets indicate current price is over target). If MND meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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