UPDATE: KeyBanc Capital Markets Initiates Coverage on Waste Connections

KeyBanc Capital Markets initiated coverage on Waste Connections

with a Buy rating and a $37 price target. KeyBanc Capital Markets noted, "WCN recently announced it reached an agreement to acquire R360 Environmental Solutions, an E&P waste treatment and disposal company, for $1.3 billion in cash. While we acknowledge the deal does stray slightly from its core waste industry and is likely to foster greater volatility, our initial assessment is that we are favorable on the deal. Our estimates suggest it could be accretive to earnings by 15-36% in 2013 (implying pro forma potential EPS of $1.82 and $2.15 based on our base and best case scenario analysis, respectively)." Waste Connections closed at $30.22 on Tuesday.