Waste Connections (WCN – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Toni Kaplan from Morgan Stanley maintained a Buy rating on the stock and has a $219.00 price target.
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Toni Kaplan has given his Buy rating due to a combination of factors that highlight the potential growth and resilience of Waste Connections. Despite a slight miss in internal revenue growth and volume performance, the company has shown strong pricing power, with core prices exceeding expectations in competitive markets. Additionally, the company’s acquisition strategy is contributing significantly to revenue, with over $750 million in annual revenue for the fiscal year 2024 and further revenue expected from recently closed deals.
Kaplan notes that while EBITDA margins were slightly below projections, Waste Connections’ guidance suggests a positive outlook with expected margin expansion and top-line growth driven by acquisitions and strong core pricing. This optimistic guidance, coupled with the company’s strategic market positioning and acquisition benefits, supports Kaplan’s Buy rating and the increased price target of $219.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $209.00 price target.