Cleanaway Waste Management (ASX:CWY) received a positive view from Jefferies following the appointment of a new chief financial officer and reaffirmation of fiscal 2026 earnings before interest and taxes (EBIT) guidance, while the broker lowered fiscal 2027 earnings forecasts due to fuel cost uncertainties and higher finance costs, the research firm said in a Wednesday note.
The company's incoming CFO Nigel Simonsz brings broad commercial and operational experience, with Jefferies saying his capital allocation and cash flow focus should support the BluePrint 2030 2.0 strategy.
The research firm said the company's fiscal 2026 underlying EBIT guidance of about AU$470 million is slightly above expectations and reflects strong execution, exceeding its prior AU$450 million target after adjusting for acquisitions and fuel impacts.
Jefferies cut its fiscal 2027 EBIT forecast to AU$534.4 million from AU$560.8 million due to fuel cost uncertainty, Middle East risks and higher interest rates lifting net finance costs to AU$170 million.
It kept its fiscal 2026 net profit after tax forecast unchanged but reduced its fiscal 2027 and fiscal 2028 estimates by 9% and 2.9%, respectively, while maintaining a positive view on double-digit earnings growth, strong cash flow and valuation support.
Jefferies maintained its buy rating on Cleanaway Waste Management but lowered the price target to AU$3.05 from AU$3.21.
Cleanaway Waste Management's shares added about 2% in recent Thursday trade.