In a report released today, Michael Feniger from Bank of America Securities reiterated a Buy rating on Waste Connections (WCN – Research Report), with a price target of $180.00.
Michael Feniger has given his Buy rating due to a combination of factors including Waste Connection’s strong start to the year, particularly in its M&A activities. Waste Connections reported a robust first quarter, with EBITDA increasing by 15% year-over-year and surpassing both their own guidance and consensus estimates. This was supported by a solid core price growth, excellent operational flow through, and an EBITDA margin that improved significantly. Despite a slightly less dazzling performance compared to its peer Waste Management, Feniger views Waste Connections’ results as positive, given the strong momentum heading into 2024 and 2025, suggesting a solid foundation for future growth.
Furthermore, Waste Connections is perceived to have a distinctive edge in terms of mergers and acquisitions (M&A), having already completed a full year’s worth of M&A within just four months and signaling an exceptionally active year ahead. This robust M&A strategy is expected to continue driving growth and is seen as a differentiator when compared to its peers. Feniger has also noted the potential for upward revision of Waste Connections’ FY24 margin guide, due to factors such as recycling and turnover initiatives. These elements have led to an increase in Feniger’s price objective for the stock, reflecting confidence in the company’s value proposition and its ability to maintain a higher multiple due to the M&A opportunities ahead.
In another report released today, Oppenheimer also maintained a Buy rating on the stock with a $181.00 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Waste Connections (WCN) Company Description:
Waste Connections, Inc. is an integrated solid waste management services company. It provides waste collection, waste disposal, transfer, and recycling services in the US and Canada.
