Strategic Acquisition and Growth Prospects Drive Positive Outlook for Cleanaway Waste Management

Morgan Stanley analyst Robert Koh maintained a Buy rating on Cleanaway Waste Management (TSPCF – Research Report) today and set a price target of A$3.08.

Robert Koh’s rating is based on several strategic factors surrounding Cleanaway Waste Management’s recent activities and future prospects. The acquisition of CityWide Waste for A$110 million is a significant move, expected to enhance Cleanaway’s earnings and operational capacity, particularly at the Dynon waste transfer site. This acquisition, approved by the ACCC, is anticipated to close financially before the fiscal year ends, positioning Cleanaway for growth.
Moreover, despite a slight reduction in the price target to A$3.08 per share, Koh maintains a positive outlook due to the company’s stable earnings projections and strategic investments. The adjustments in the discounted cash flow and multiples valuations, alongside the regular mark-to-market for commodity prices, reflect a cautious yet optimistic approach. The increase in earnings estimates for FY26 and FY27 further supports the Buy rating, indicating confidence in Cleanaway’s ability to capitalize on its recent acquisition and operational enhancements.