Cleanaway shares rise as Morgans lift target price on quick acquisition completion
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The news: Shares in Cleanaway lifted as analysts at stockbroker Morgans raised their target price on the stock following news the waste management firm would complete its acquisition of Contract Resources sooner than expected.
The numbers: Cleanaway’s share price had lifted 1.6% to $2.82 at 2:52pm AEST.
Morgans analysts lifted their 12-month target price for the stock from $2.98 to $3.12 on a discounted-cash flow basis after Cleanaway announced it would complete its acquisition of Contract Resources on 31 July, four months earlier than had been assumed by Morgans.
The earlier acquisition lifts Morgans’ forecasts for financial year 2026 revenue by 3%, earnings before interest, tax, depreciation, and amortisation (EBITDA) by 2% and EBIT by 1%. There is no change to the analysts’ forecasts beyond FY26.
The context: Cleanaway announced its expected acquisition date on 4 July at the same time as it told the market that the Australian Competition and Consumer Commission would not stand in the way of the deal.
The sources: ASX, Morgans research
