The team at Morgans have updated their outlook on ASX shares Cleanaway Waste Management Ltd (ASX: CWY) and Capstone Copper Corp (ASX: CSC).
Both ASX shares have fallen so far in 2026, but the broker is confident these companies can rebound.
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Buy rating retained for Cleanaway Waste Management
Cleanaway Waste Management is Australia's largest waste management business, with a national footprint. Its services span collection, midstream waste processing, treatment, recycling, and downstream waste disposal.
Its share price is down 13% year to date.
Yesterday, the company released a trading update due to the impacts of the conflict in the Middle East.
The company said the war has increased fuel, supplier, and logistics costs, reduced Middle East Contract Resources activity, and created uncertainty, especially in projects.
Cleanaway expects to recover much of the fuel cost increases over time but is closely monitoring impacts. The combined effect is an estimated ~$20 million reduction in FY26 EBIT, with revised guidance of $460 to $480 million (down from $480 to $500 million).
In response, the team at Morgans updated its forecasts for the EBIT guidance downgrade and higher interest rate environment.
EBITDA downgrades are relatively small but EPS downgrades are material in the short term given the funding and depreciation costs of CWY's asset base. Target price $2.95/sh. BUY retained. Potential upside catalyst is next Tuesday's strategy briefing.
From the current share price of approximately $2.26, the price target from Morgans indicates an upside potential of 30%.
Capstone Copper Corp still a buy
Capstone Copper shares also received updated guidance from the team at Morgans.
The company operates as a copper producer with a diversified portfolio of operating assets focused in the Americas, with an extensive pipeline of near-term organic growth opportunities.
In 2026, its share price has fallen roughly 11.5%.
However over the last 12 months, it has benefited from rising global copper prices and its stock price is up more than 80% in that span.
Today, its share price has climbed approximately 1.4%.
The team at Morgans slightly reduced its share price target for Capstone Copper shares.
We have adjusted our CY26 production forecasts to better reflect the phasing of maintenance across assets and a revised production mix between cathode and sulphide output at Mantos Blancos and Mantoverde. Net these changes our target price moves to A$15.40ps (previously A$16ps) and we maintain our BUY rating.
From today's share price of $12.84, the updated price target indicates an upside potential of approximately 20%.
