On Thursday, RBC Capital adjusted its outlook on Cleanaway Waste Management (NYSE:WM) (CWY:AU) (OTC: TSPCF) shares, increasing the price target to AUD3.40 from the previous AUD3.20, while reiterating an Outperform rating on the stock.
The revision follows Cleanaway's fiscal year 2024 financial results, which aligned with expectations showing a 19% rise in EBIT to $359 million, slightly surpassing the company's guidance of around $350 million. This performance was noted for not including any one-off items.
Cleanaway also announced a final dividend of 2.55 cents per share, which was in line with forecasts and provided EBIT guidance for fiscal year 2025 between $395 million and $425 million. The company also reiterated its fiscal year 2026 ambition to achieve an EBIT of "more than $450 million."
The waste management company's latest financial disclosures indicate a consistent adherence to its targets, a factor highlighted by RBC Capital in its assessment.
The firm's disciplined and predictable approach was cited as a key driver behind the solid results, contributing to the maintained positive outlook on the stock.
In addition to the financial achievements, Cleanaway's commitment to its future EBIT targets reflects the company's strategic planning and operational efficiency. The reaffirmed FY26 ambition underscores confidence in continued growth and profitability.
Investors responded to the updated guidance and the analyst's continued endorsement, noting the company's trajectory toward its long-term financial goals. The stock's new price target of AUD3.40 reflects RBC Capital's confidence in Cleanaway's operational performance and strategic direction.
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