Cleanaway Waste Management presented some key aspects of its Western Sydney energy from waste facility, expected to cost circa $700m and processing 500kt of waste. The facility will generate 55MW in power and reduce 390kpta of carbon emissions.
Macquarie likes Cleanaway Waste Management for its long term exposure to a maturing waste management industry landscape. The broker also thinks the company is well placed when it comes to benefiting from the policy tilt towards supporting alternatives to landfill.
The target is unchanged at $2.55. Outperform retained.
Sector: Commercial & Professional Services.
Target price is $2.55.Current Price is $2.40. Difference: $0.15 – (brackets indicate current price is over target). If CWY meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
