Oppenheimer Believes Waste Connections Inc (NYSE: WCN) Won’t Stop Here

By Carrie Williams

In a report released today, Noah Kaye from Oppenheimer maintained a Buy rating on Waste Connections Inc (NYSE: WCN), with a price target of $70. The company’s shares closed yesterday at $65.16, close to its 52-week high of $67.06.

Kaye observed:

“During WCN’s Analyst Day, management asserted that 75% of EBITDA margin outperformance (+340 bps higher than the peer average in FY16) comes from structural factors (e.g., having concentrated assets in attractive markets), while the remaining 25% requires focus on execution and culture. We believe Progressive’s transformation clearly underscores the importance of that 25%, manifesting in quantifiable benefits like improved safety and reduced turnover. As we assess the broader M&A opportunity for WCN following the Progressive merger—with focus on consolidating the C$10B Canada waste market—we believe that culture will remain a key factor in driving inorganic growth.”

According to TipRanks.com, Kaye is a 3-star analyst with an average return of 4.4% and a 52.6% success rate. Kaye covers the Basic Materials sector, focusing on stocks such as Advanced Disposal Services Inc, Republic Services, and Waste Management.

Waste Connections Inc has an analyst consensus of Strong Buy, with a price target consensus of $96.

The company has a one year high of $67.06 and a one year low of $45.51. Currently, Waste Connections Inc has an average volume of 571.1K.

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Waste Connections, Inc. is an integrated municipal solid waste services company, which provides solid waste collection, transfer, disposal and recycling services in mostly exclusive and secondary markets in the U.S. and Canada. It also provides intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. The company was founded by Ronald J. Mittelstaedt on September 9, 1997 and is headquartered in Vaughan, Canada.