GFL Environmental assumed with Neutral from Overweight at JPMorgan

JPMorgan analyst Tami Zakaria downgraded GFL Environmental (GFL) to Neutral from Overweight with a price target of $54, up from $51, after assuming coverage of the waste services sector. GFL’s risk/reward is balanced at these levels, given the shares reflects the company’s improved cash conversion profile, the analyst tells investors in a research note. The firm expects GFL’s EBITDA margin to trail peers in the medium term due to its lower landfill ownership. Longer term, GFL has ample capacity and white space to pursue low risk, highly accretive tuck-in solid waste acquisitions, adds JPMorgan.