CWY – Morgans rates the stock as Add

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Morgans expects the company to deliver 8% growth in revenue and 15% growth in operating earnings (EBITDA) when the first half result is reported on February 14.

Adding in the Toxfree acquisition lifts revenue growth forecasts to 42% and operating earnings to 44%. Cash conversion is normally strong.

The recent retreat in the share price gives the broker cause to retain an Add rating. Target is raised to $1.94 from $1.89.

Sector: Commercial & Professional Services.

Target price is $1.94.Current Price is $1.78. Difference: $0.16 – (brackets indicate current price is over target). If CWY meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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