Clean Harbors: Overcoming Short-Term Challenges with Strong Performance and Future Opportunities

TD Cowen analyst James Schumm has maintained their bullish stance on CLH stock, giving a Buy rating yesterday.

James Schumm’s rating is based on several considerations that highlight the potential for Clean Harbors to overcome short-term challenges and capitalize on future opportunities. Despite the stock’s recent decline, Schumm believes this drop is excessive, especially in light of the company’s strong performance in the previous quarter. Clean Harbors delivered better-than-expected results, with EBITDA and free cash flow exceeding market estimates, which suggests underlying resilience in its operations.
Moreover, Schumm points to Clean Harbors’ Environmental Services segment as a key strength, which has performed robustly despite challenges in the smaller SKSS segment. He anticipates that the negative sentiment surrounding SKSS is nearing its peak and that improvements in cost structure and operational efficiencies will bolster future performance. In the longer term, Schumm sees a positive risk-reward scenario, supported by potential tailwinds such as recovery from weather disruptions and opportunities in emergency response initiatives.

In another report released yesterday, BMO Capital also maintained a Buy rating on the stock with a $270.00 price target.

Based on the recent corporate insider activity of 79 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CLH in relation to earlier this year.