Shlomo Rosenbaum, an analyst from Stifel Nicolaus, has initiated a new Buy rating on Casella Waste (CWST).
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Shlomo Rosenbaum has given his Buy rating due to a combination of factors that position Casella Waste for strong future performance. As the smallest public player in the solid waste sector, Casella Waste has significant potential to expand through acquisitions, which is expected to drive industry-leading free cash flow (FCF) growth over the next seven years. The company also benefits from owning landfills in the capacity-constrained Northeast, providing it with additional pricing power.
Rosenbaum anticipates upper-single-digit revenue growth for Casella Waste, with a mix of organic growth and acquisitions. The company’s AEBITDA margins are projected to improve as it better integrates acquired assets and scales its operations. However, the primary risk identified is the company’s ability to effectively integrate these acquisitions, as delays in integrating GFL assets have impacted margin expansion. Despite this risk, the overall outlook remains positive, supporting the Buy rating.
Rosenbaum covers the Financial sector, focusing on stocks such as Factset Research, S&P Global, and TransUnion. According to TipRanks, Rosenbaum has an average return of 6.1% and a 55.07% success rate on recommended stocks.