Strong Growth and Strategic M&A Position Waste Connections as an Attractive Investment

Trevor Romeo, an analyst from William Blair, has initiated a new Buy rating on Waste Connections (WCN).

Trevor Romeo’s rating is based on Waste Connections’ strong and stable growth in its solid waste business, which accounts for the majority of its revenue. The company’s vertically integrated asset network and decentralized operating model are expected to continue driving impressive price-led growth and superior margins, even in uncertain economic conditions.
Additionally, Waste Connections has a significant opportunity for growth through mergers and acquisitions, with a pipeline of $5 billion in revenue opportunities. This M&A activity is anticipated to contribute significantly to the company’s EBITDA and free cash flow per share over the long term. Furthermore, the company’s renewable natural gas projects and E&P waste business are expected to enhance margins and cash flow, making Waste Connections an attractive investment despite its premium valuation compared to peers.

Romeo covers the Industrials sector, focusing on stocks such as Korn Ferry, Robert Half, and Waste Connections. According to TipRanks, Romeo has an average return of 2.7% and an 85.71% success rate on recommended stocks.