Monadelphous Group (ASX:MND) recorded a strong start to the year with a high volume and value of contract disclosures, supported by the level of work secured in fiscal year 2025, boosting confidence to the upside for fiscal year 2027 estimates, Jefferies said in a Thursday note.
The company provided three contract updates since the start of the year, amounting to roughly AU$585 million in construction and multi-year maintenance awards.
The company posted fiscal first-half revenue guidance of about AU$1.5 billion and expects fiscal year 2026 revenue growth of 20% to 25% year-over-year.
Jefferies' forecasts align with the company's fiscal H1 figure but are slightly below the full-year growth range at 19%.
The investment advisory firm maintained an underperform rating and AU$18 price target on Monadelphous Group.
Shares rose 1% in morning trade on Thursday.