In a report released today, Noah Kaye from Oppenheimer maintained a Buy rating on Waste Connections Inc (NYSE: WCN), with a price target of $86. The company’s shares closed yesterday at $78.88, close to its 52-week high of $79.63.
Kaye observed:
“We recently hosted and CFO for investor meetings. Against a backdrop of strong solid waste fundamentals, WCN is focusing on (1) price-led growth as the linchpin of margin expansion, (2) disciplined operating execution with emphasis on accountability and safety, and (3) M&A as the highest use of discretionary capital. We believe these focus areas are well represented in management’s outlook for 4-6% organic growth (+4% price), 3-4% inorganic growth, 50-75bps margin expansion, and double-digit FCF growth in FY19. In our view, WCN remains a best-in-class executor with a differentiated market footprint and growth strategy that supports structurally higher margins and FCF growth relative to peers. We maintain our Outperform rating.”
According to TipRanks.com, Kaye is a 4-star analyst with an average return of 5.8% and a 54.6% success rate. Kaye covers the Industrial Goods sector, focusing on stocks such as Rockwell Automation Inc, BorgWarner, and Cummins.
Waste Connections Inc has an analyst consensus of Strong Buy, with a price target consensus of $84.80.
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Waste Connections Inc’s market cap is currently $20.77B and has a P/E ratio of 29.65. The company has a Price to Book ratio of 3.28.
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Waste Connections, Inc. engages in the provision of solid waste services. It operates through the following segments: Southern, Western, Eastern, Canada, Central, and Exploration and Production. Its services include waste collection, transfer, disposal, treatment, recovery, and recycling: and non-hazardous exploration and production.
