UPDATE: Ascendiant Capital Initiates Covanta Holding Corporation with Buy Rating on Attractive Valuation

In a report published Thursday, Ascendiant Capital analyst Carter W. Driscoll initiated coverage on Covanta Holding Corporation

with a Buy rating and $24.00 price target. In the report, Driscoll noted, “We are initiating coverage of Covanta Holding with a BUY rating and $24 price target. Covanta is the largest owner and operator of energy-from-waste (EfW) facilities in the U.S. The company generates most of its revenue from waste disposal fees, electricity (under long-term PPAs) generation and recovery of ferrous and non-ferrous metals.Significant barriers to entry include the high capital costs to build a plant ($250-$300M per 1,000 tons per day (TPD) waste processing plant), the long payback time from a waste facility project, permitting difficulties (no new EfW plants built in the U.S. in almost 17 years) and difficulty accessing steady waste sources.” Covanta Holding Corporation closed on Wednesday at $19.85.