After Goldman Sachs and Raymond James gave Covanta Holding (NYSE: CVA) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Noah Kaye maintained a Buy rating on Covanta Holding today and set a price target of $18. The company’s shares closed on Friday at $17.
Kaye commented:
“We recently hosted Covanta CEO Steve Jones, CFO Brad Helgeson and IR Dan Mannes for investor meetings. In our view, following a multi-year transition period of deflationary commodities and contract transitions, CVA’s asset portfolio has begun to appreciate in value as a key waste disposal solution for capacity-constrained markets. We believe Covanta has multiple levers to achieve management’s target of doubling FCF to $250M by the mid-2020s, supporting the dividend and decreasing leverage. We outline several of these levers below, which include near-term milestones/ catalysts, as key to watch throughout FY19.”
According to TipRanks.com, Kaye is a 4-star analyst with an average return of 7.2% and a 57.6% success rate. Kaye covers the Industrial Goods sector, focusing on stocks such as Rockwell Automation Inc, Caterpillar, and BorgWarner.
Currently, the analyst consensus on Covanta Holding is a Strong Buy with an average price target of $18, a 5.9% upside from current levels. In a report issued on February 19, Robert W. Baird also maintained a Buy rating on the stock with a $18 price target.
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The company has a one-year high of $18.05 and a one-year low of $12.92. Currently, Covanta Holding has an average volume of 908.6K.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is neutral on the stock.
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Covanta Holding Corp. engages in the operation and ownership of infrastructure for the conversion of waste to energy and related waste transport & disposal and other renewable energy production businesses. It operates large-scale Energy-from-Waste and renewable energy projects. The company was founded on April 16, 1992 and is headquartered in Morristown, NJ.
