Up 75%! Why this rocketing ASX All Ords stock is forecast to deliver more outsized gains

A top broker forecasts more outperformance from this soaring ASX stock. But why?

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The All Ordinaries Index (ASX: XAO) is up around 1% since this time last year, with plenty of help from this surging ASX All Ords stock.

The outperforming company in question is Shape Australia Corporation Ltd (ASX: SHA).

In Monday afternoon trade, shares in the Australian fitout and construction services specialist were trading for $7.19 apiece. That sees the Shape share price up an impressive 74.9% in 12 months.

Atop those strong capital gains, the ASX All Ords stock also paid (or shortly will pay) two fully franked dividends, totalling 32 cents a share, over this period. At the recent share price, this sees Shape shares trading on a fully franked 4.5% trailing dividend yield. That equates to a grossed-up yield of 6.4%, once we add in the benefits of those franking credits.

It's a bit late to grab the final FY 2026 Shape dividend, with the stock having traded ex-dividend on Friday, 28 August.

But I wouldn't be concerned about the upcoming passive income payment, with the analysts at Ord Minnett forecasting Shape shares to deliver more outsized gains.

A business person directs a pointed finger upwards on a rising arrow on a bar graph.

Image source: Getty Images

What's been happening with Shape shares?

Shape reported its full year FY 2026 results on 19 August.

Highlights included a 29.6% year-on-year increase in revenue to $1.24 billion, marking the first year the ASX All Ords stock achieved more than $1 billion in annual revenue.

Earnings grew strongly as well, with earnings before interest, taxes, depreciation and amortisation (EBITDA) up 53% to $50 million.

And on the bottom line, Shape reported net profit after tax (NPAT) of $32 million, up 50.2% from FY 2025.

Over the 12 months, Shape also completed two strategic acquisitions, Arden and Australian Professional Shopfitters (APS).

Should I buy the ASX All Ords stock today?

Ord Minnett noted that Shape's revenue exceeded the top range of guidance of $1.225 billion.

The broker added:

Notably, a gross margin of 9.8% (9.5% ex. interest revenue) looks to be a sustainable level going forward given that Arden's contribution in the 2H offset the slight pullback in modular revenue, which was to be expected.

This gross margin profile in FY27 will be supported by an additional half of Arden operations as well as a full year of APS earnings. In addition, the modular business has room to grow with a sizable cut of the 23% education contribution to the $628.4m orderbook allocated to modular work. SHAPE continues to execute strongly on its strategy

Ord Minett also believes management is being conservative with its FY 2027 earnings outlook.

"Outlook for FY27 earnings looks to be somewhat conservative, but gives SHAPE a strong chance of exceeding expectations given its strong track record of performance," the broker noted.

Connecting the dots, Ord Minett maintained its buy recommendation on the ASX All Ords stock with a slightly lowered price target of $8.55 a share (down from $8.85).

That represents a potential upside of around 19% from the recent Shape share price.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Shape Australia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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