2023-04-18 13:53:29 ET
Waste Management ( NYSE: WM ) and Waste Connections ( NYSE: WCN ) on Monday were both rated Buy in new research coverage by analysts at Truist Securities. With their initiation of coverage of the municipal solid waste industry, they also rated Republic Services ( NYSE: RSG ) as a Hold.
“These defensive, wide moat and well-managed leading players are an attractive area for portfolio managers to invest amid global uncertainty,” Tobey Sommer, analyst at Truist, said in an April 17 report. “Our favorite name in the group is Waste Management ( WM ) as we see prospects for highly compelling returns and multiple expansion driven by aggressive sustainability investments.”
Truist set price targets for the stocks of the companies based on differing enterprise value-to-EBITDA multiples for 2024: Waste Management ( WM ) of $190 a share based on a multiple of 14.5 times, Waste Connections ( WCN ) of $160 a share, assuming a multiple of 16.8 times and Republic Services ( RSG ) of $146 a share based on a multiple of 12.3 times.
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Waste Management, Waste Connections rated Buy in new coverage at Truist