The virus impact on Cleanaway Waste Management’s operations has largely netted out to flat, given falls in demand for collections in Commercial & Industrial, other than supermarkets, have been offset by increased residential collections. The company says it’s still on track to meet prior FY20 guidance but has withdrawn guidance nonetheless.
Morgans assumes relatively flat earnings across FY20-21 before lifting again from FY22. Target falls to $2.12 from $2.17, upgrade to Add from Hold.
Sector: Commercial & Professional Services.
Target price is $2.12.Current Price is $1.83. Difference: $0.29 – (brackets indicate current price is over target). If CWY meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
