William Blair analyst Trevor Romeo has reiterated their bullish stance on CWST stock, giving a Buy rating on July 22.
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Trevor Romeo has given his Buy rating due to a combination of factors that highlight Casella Waste’s strong revenue performance and strategic growth initiatives. The company exceeded revenue expectations, primarily driven by robust organic growth in resource solutions and improving landfill volumes, which led to an upward revision in revenue guidance. Despite some challenges with margins and adjusted EBITDA guidance remaining unchanged, the overall revenue growth and recent acquisitions suggest a positive outlook.
Moreover, Casella Waste’s shares are considered attractive as they are trading at a discount compared to their 5-year averages. The company’s ability to outperform in internal revenue growth, despite a slight decline in volumes, further supports the Buy rating. Additionally, the recent acquisitions, although contributing to a margin drag, are seen as strategic moves that could enhance long-term value. These factors collectively underpin Trevor Romeo’s positive assessment of Casella Waste’s stock.
According to TipRanks, Romeo is a 2-star analyst with an average return of -0.3% and a 55.56% success rate. Romeo covers the Industrials sector, focusing on stocks such as Casella Waste, Korn Ferry, and Kforce.
In another report released on July 22, Raymond James also maintained a Buy rating on the stock with a $129.00 price target.