Morningstar, Jefferies slash forecasts for Australia's Cleanaway as Iran war bites

Morningstar

14/04/2026 19:47

** Jefferies cuts price target for Cleanaway Waste Management CWY.AX to A$3.21 from A$3.27, retains "buy" rating

** PT cut comes after Cleanaway on Tuesday lowered FY26 EBIT forecasts on higher Iran-war-driven fuel costs; now sees EBIT between A$460 million ($328.03 million) to A$480 million from earlier guidance of A$480 million to A$500 million

** Although Jefferies lowered FY26 EBIT outlook, increased FY27 EBIT by 2.8%, it expects fuel prices to normalize by 1H27

** Morningstar cuts forecasts in line with company's guidance, but does not see higher fuel prices to hit earnings beyond FY26

** Morningstar also expects firm to largely pass on price impact to customers

** Thirteen analysts on average rate the stock "buy", with median PT A$3.16 - LSEG-compiled data

** YTD, CWY shares down 12.4%

($1 = 1.4023 Australian dollars)

(Reporting by Nichiket Sunil in Bengaluru)

((Nichiket.Sunil@thomsonreuters.com))