Casella Waste (CWST – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Michael Feniger from Bank of America Securities maintained a Sell rating on the stock and has a $108.00 price target.
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Michael Feniger has given his Sell rating due to a combination of factors. Casella Waste reported mixed results in the fourth quarter, with its EBITDA showing a year-over-year increase but still falling short of consensus expectations. The EBITDA margin also experienced a slight decline. Despite the company’s strong cash flow and positive guidance for 2025, Feniger highlights concerns regarding the valuation of Casella Waste’s stock.
While Casella Waste has demonstrated effective operations and a robust acquisition strategy, Feniger believes that these positive aspects are already reflected in the stock’s current valuation, which is at a significant premium compared to the broader waste sector. The high valuation, combined with a modest free cash flow yield and lack of dividend, leads Feniger to maintain a Sell recommendation, as he struggles to justify an even higher valuation premium.
According to TipRanks, Feniger is a 5-star analyst with an average return of 12.9% and a 66.49% success rate. Feniger covers the Industrials sector, focusing on stocks such as Oshkosh, Aecom Technology, and Agco.