Needham analyst James Ricchiuti maintained a Buy rating on Clean Harbors today and set a price target of $255.00.
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James Ricchiuti’s rating is based on a combination of factors that highlight both challenges and opportunities for Clean Harbors. Despite facing difficulties in the chemicals and refinery markets, which impacted the company’s Industrial Services segment and led to a third-quarter performance below expectations, other areas of the business are showing resilience. The Environmental Services segment is performing well, and the Safety-Kleen Sustainability Solutions (SKSS) has been derisked, aligning with previous 2025 adjusted EBITDA targets.
Furthermore, while the adjusted EBITDA for the third quarter grew by 6% year-over-year, it was below the anticipated 10% growth. However, the Environmental Services segment saw a 3% revenue increase year-over-year, maintaining strong adjusted EBITDA margins. SKSS, despite a decline in year-over-year revenues, continues to demonstrate solid adjusted EBITDA. The guidance for the fourth quarter suggests a slight shortfall compared to consensus, but the outlook for 2026 indicates a modest 5% growth in adjusted EBITDA. Ricchiuti believes that Clean Harbors is positioned to exceed expectations in the coming year, provided that macroeconomic conditions are favorable, which justifies the Buy rating.
Ricchiuti covers the Technology sector, focusing on stocks such as TTM Technologies, MKS, and Zebra Tech. According to TipRanks, Ricchiuti has an average return of 14.4% and a 56.97% success rate on recommended stocks.
In another report released today, BMO Capital also assigned a Buy rating to the stock with a $264.00 price target.