CWY – Macquarie rates the stock as Outperform

Cleanaway Waste Management announced its $501m Sydney SUEZ asset acquisition will complete earlier than expected on December 18. Macquarie notes the 5 transfer stations and 2 landfills combined generated $193.1m revenue and $76.9m underlying earnings in 2020.

According to Macquarie the purchase strengthens the company’s Sydney network and execution is a positive for a new management team. Earnings per share increase 10.0%, 16.9% and 17.0% through to FY24.

The Outperform rating is retained and the target price increases to $3.70 from $3.20.

Sector: Commercial & Professional Services.


Target price is $3.70.Current Price is $2.86. Difference: $0.84 – (brackets indicate current price is over target). If CWY meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).



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