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UPDATE: Goldman Sachs Reinstates Coverage on Waste Connections with Neutral Rating, $40 PT

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In a report published Wednesday, Goldman Sachs Group reinstated coverage on Waste Connections (NYSE: WCN) with a Neutral rating and $40.00 price target.

Goldman Sachs noted, “We have removed the Not Rated designation from Waste Connections (WCN) shares. We have a Neutral rating on WCN with a 12-month price target of $40. On October 25, 2012, WCN completed the acquisition of R360 Environmental Solutions, a leading provider of non-hazardous oilfield waste treatment, recovery and disposal services. While we like WCN's position in MSW (76% of revenues), and enhanced top-line revenue growth profile driven by R360's leverage to structural growth in US energy production, we rate the stock Neutral as it provides less leverage to the recovery we see in MSW. We note that based on our 2014 estimates, WCN trades at a 21% and 13% discount to its 10-year average P/E and relative P/E, compared to RSG and WM which trade at a 26%/18% and 25%/17% discounts, respectively.”

Waste Connections closed on Tuesday at $32.92.

Posted-In: Goldman Sachs GroupAnalyst Color Initiation Analyst Ratings


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