UPDATE: Credit Suisse Downgrades Clean Harbors to Neutral, Reiterates $62 PT on Greater Cyclicality, Higher Capex Intensity

In a report published Tuesday, Credit Suisse analyst Hamzah Mazari downgraded the rating on

from Outperform to Neutral, but reiterated the $62.00 price target. In the report, Credit Suisse noted, “We are downgrading CLH shares to Neutral because of greater cyclicality and higher capex intensity in the business combined with the fact that our upgrade thesis on volume leverage in the base business has played out. We are also concerned the Chevron expansion will hurt re-refining margins and management has done a poor job of communicating recently. We believe a series of guidance cuts combined with poor recent communication with investors has led to multiple compression relative to history. Although we like the CLH story longer term, we do not see CLH's multiple recovering in the medium term until management can put together a strong string of earnings beats and the market can get comfortable with not only Safety-Kleen margins recovering, but industrial services returning to a more normalized level of organic growth.” Clean Harbors closed on Monday at $56.58.