In a report released yesterday, Devin Dodge from BMO Capital maintained a Buy rating on Waste Connections, with a price target of $216.00.
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Devin Dodge has given his Buy rating due to a combination of factors that highlight Waste Connections’ promising future prospects. The company is expected to reach a pivotal point in 2026, where significant improvements in margins and free cash flow (FCF) are anticipated. This positive outlook is supported by a reduction in headwinds from commodity values, which may turn into tailwinds, and a decrease in sustainability capital expenditures. Additionally, Waste Connections is poised to benefit from accelerated earnings and FCF contributions from landfill gas projects, alongside a decline in remediation spending at a problematic site in California.
Moreover, the company is advancing its digital investments, which are expected to enhance both customer experience and internal efficiencies. These technological advancements, including dynamic routing and fleet maintenance, are likely to reduce customer churn, improve revenue quality, and lower operating costs. Waste Connections is also well-positioned to capitalize on M&A opportunities, with a robust pipeline and the capacity to self-fund deals. These strategic initiatives and the company’s ability to leverage technology are expected to contribute to its competitive advantage and drive future growth.
According to TipRanks, Dodge is a 5-star analyst with an average return of 13.3% and a 73.85% success rate. Dodge covers the Industrials sector, focusing on stocks such as Finning International, Clean Harbors, and Enviri.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $219.00 price target.