Cleanaway’s Valuation Looking Reasonable Following COVID-19 Sell-Off; Balance Sheet Well-Positioned

Our AUD 1.70 per share fair value estimate for Cleanaway remains intact, with the advent of the COVID-19 pandemic having no bearing on our long-term expectations for the no-moat name. We expect Cleanaway Waste Management’s earnings to exhibit relative resilience to both the immediate and medium-term impacts of COVID-19. Understandably, the operations of Cleanaway Waste Management--as Australia’s largest integrated waste management business--have been deemed an essential service by Australian federal and state governments. As such, present COVID-19 containment measures will not interrupt Cleanaway’s operations. Relatedly, we make no changes to our fiscal 2020 earnings estimates, despite the recent withdrawal of prior fiscal 2020 earnings guidance.