Financial analysis team Jefferies has increased their price target for Australian firm, Monadelphous Group (ASX:MND) from AUD$15 to AUD$16, while upholding a ‘buy’ rating for their prospects.

Jefferies notably maintains a positive outlook for the company, anticipating substantial growth in multiyear profits.

They predict there’s ample scope for expansion in the engineering and construction sectors, in particular.

They also express confidence in the company’s potential to return to FY17-19 earnings before interest and taxes (EBIT) margin levels.

Monadelphous Group’s (ASX:MND) Engineering and Construction and Civil Construction sectors are projected to gain advantage from an escalated level of work-related projects in the Pilbara region.

Jefferies puts forward that new contracts hold more opportunities than risks due to the current scarcity in the labor market.

The financial service firm also states their decision to bring down the EBITDA margin presumptions.

Shares of Monadelphous Group (ASX:MND) have appreciated by 3.4% Year To Date till the latest market closure.

Monadelphous Group operates as a signal provider of construction, maintenance and industrial services to the resources sector.