Cleanaway’s Cost Headwinds Only Transitory, but Shares Still Overvalued

We lower our full-year EBITDA forecast for no-moat Cleanaway by 3% to AUD 575 million. This is in response to Cleanaway's revised fiscal 2022 guidance that implies a decrease in expected full-year EBITDA by around AUD 15 million-AUD 20 million on the previously disclosed outlook. The revision largely relates to a range of cost headwinds, which we have incorporated within our forecast.