SHAPE AUSTRALIA CORPORATION LIMITED (SHA)
Share Price Analysis and Chart

23/05/2025

1

Initiation of coverage with Buy

$5.00

52.44%

Shaw and Partners has initiated coverage of Shape Australia with a Buy rating and target price of $5.

The broker believes the company has a resilient business model, with 40% of projects of less than 4 months duration, which reduces cost blow-outs and delay risks. 

Other positives include its diversification strategy into non-office sectors, new capabilities, and across geographies.

The company started 2H25 with a record contract backlog of $516m, a near-term pipeline of $3.4bn, and $120m net cash. The broker forecasts revenue growth at a compounded 8% rate from FY24 to FY29 to reach $1.17bn.

Near-term catalysts might come from major contract wins in the defence and government programs. The analyst also sees scope for value-accretive acquisitions.

FORECAST
Shaw and Partners forecasts a full year FY25 dividend of 20.30 cents and EPS of 23.30 cents.
Shaw and Partners forecasts a full year FY26 dividend of 21.60 cents and EPS of 24.90 cents.

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24/02/2025

1

Buy

$3.56

8.54%

Shape Australia's strong top-line growth was a highlight of the 1H25 result, Moelis notes, with revenue of $476.6m 5% higher than its forecast on continued execution of the diversification strategy.

The broker believes the increasingly diversified business model, underpinned by strong project wins and order backlogs, offers a promising growth outlook. The analyst upgraded FY25-26 EPS estimates by 9% and 3% respectively.

Target price rises to $3.56 from $3.24. Buy maintained.

FORECAST
Moelis forecasts a full year FY25 dividend of 19.50 cents and EPS of 22.40 cents.
Moelis forecasts a full year FY26 dividend of 18.90 cents and EPS of 22.30 cents.