Waste Connections initiated with a Buy at Melius Research

Melius Research initiated coverage of Waste Connections (WCN) with a Buy rating and $213 price target Despite the market’s growing appreciation for the quality of the waste industry leaders, there is more outperformance to come in both the short and long run, from lower risk, less downside to earnings, and higher growth, the analyst tells investors in a research note. The firm says that while the stocks’ relative multiples are roughly in line with historical levels, the premium deserved now is larger than in the past. Waste leaders benefit from inflation, with strong pricing power, often with prices contractually linked to inflation, contends Melius.