Analyst Toni Kaplan from Morgan Stanley maintained a Buy rating on Waste Connections (WCN – Research Report) and keeping the price target at $227.00.
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Toni Kaplan has given his Buy rating due to a combination of factors that highlight Waste Connections’ strong market position and financial performance. The company’s unique business model, which focuses on exclusive and secondary markets, allows it to maintain strong pricing power and healthier margins compared to its peers. This strategic positioning is further enhanced by its significant presence in franchise markets, where it controls the entire waste process without competition.
Additionally, Waste Connections has consistently demonstrated higher pricing and core waste revenue growth, with EBITDA margins approximately 150 basis points ahead of its competitors over the past three years. Despite recent volume declines, the company’s financial performance remains robust, and the current valuation presents an attractive entry point. The stock’s historical premium relative to peers like Republic Services has narrowed, providing a compelling opportunity for investors to capitalize on Waste Connections’ strengths.
Based on the recent corporate insider activity of 55 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 WCN in relation to earlier this year.