, an analyst from J.P. Morgan, has initiated a new Hold rating on Casella Waste (CWST).
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JPMorgan’s rating is based on several factors impacting Casella Waste Systems. The company has historically enjoyed a premium valuation due to its strong revenue growth and pricing power, particularly from its high percentage of open-market contracts. However, recent challenges, such as integration issues with the Mid-Atlantic acquisition and concerns over landfill capacity, have led to a de-rating of its stock.
Despite these challenges, Casella Waste is expected to maintain a stable growth trajectory with projected sales growth of around 7% and improvements in EBITDA margins over the next few years. The company’s pricing strategy and potential savings from operational optimizations offer some upside potential. Nonetheless, the moderation in revenue growth expectations and execution risks have led JPMorgan to adopt a more cautious stance, resulting in a Hold rating with a price target of $112.
In another report released on December 3, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $105.00 price target.
Based on the recent corporate insider activity of 50 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 CWST in relation to earlier this year.