UPDATE: Imperial Capital Initiates Coverage on Casella Waste Systems with Outperform Rating, $7.50 PT as Gathering Tailwinds Fuel Optimism

In a report published Thursday, Imperial Capital analyst Scott Levine initiated coverage on

with an Outperform rating and $7.50 price target. In the report, Imperial Capital noted, “We are initiating coverage of CWST with an Outperform rating and a one-year price target of $7.50, 30% above the recent price. While CWST's low margins and elevated debt burden have been concerns among waste investors in recent years, we think its fortunes are turning, with improving external conditions and traction from internal initiatives expected to drive improvement in margins and cash flows going forward. While the delevering pace has been modest in recent years, we expect a steady uptick over the next few years, which could have positive implications for the multiple.” Casella Waste Systems closed on Wednesday at $5.76.