Cleanaway Waste Management grew first half EBIT by 26% and met Ord Minnett's expectations.

The broker envisages the market will price in a more optimistic outlook amid accelerating revenue and margin expansion, yet EBITDA margins need to average around 150 basis points higher than current forecasts to justify the share price.

Hence, the stock screens overvalued and a Lighten rating is maintained. Target is $2.20.

Sector: Commercial & Professional Services.

Target price is $2.20.Current Price is $2.68. Difference: ($0.48) - (brackets indicate current price is over target). If CWY meets the Ord Minnett target it will return approximately -22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2024 Acquisdata Pty Ltd., source FN Arena