- Monadelphous delivers positive AGM commentary
- Brokers lift earnings estimates and price targets
- Valuation keeps broker opinions divided

By Chris Shaw

Tough operating conditions mean an acceleration in revenue growth is not common among ASX listed stocks at present. One stock to buck this trend is Monadelphous ((MND)), one of the leading structural and mechanical contractors to the resources sector.

AGM commentary from Monadelphous yesterday indicated at least 15% revenue growth should be achieved in FY12. UBS notes solid margins should also be maintained, which indicates management are not being forced to cut margins to generate this growth in revenues.

The revenue growth expectations of management are better than the 12.9% growth UBS had been forecasting. This has prompted the broker to lift earnings per share (EPS) estimates by 2% through FY14.