CLX’s operations closely mirror the business cycle, and with a WA recovery taking time and growth risks elsewhere in the country, we build more conservatism into our forecasts. Positively, CLX exhibits greater geographic diversity, while consolidation and cost control in WA positions the Company to benefit from an eventual turnaround. Our blended valuation remains $1.35 and CLX continues to trade on undemanding multiples in our view. We remain positive on the longer term outlook, and retain our BUY call accordingly, although acknowledge the current macro environment is likely to extend the recovery period.
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