Waste Connections De-Rating Creates Attractive Entry Point
Dow Jones03:05
Waste Connections is improving its cash flow conversion and showing positive future growth potential. Shares have been down about 9.3% year-to-date, and UBS analyst Jon Windham upgrades the stock to buy from neutral after "the recent underperformance has created an attractive entry point." He chalks the decline to investor jitters over the company's cash flow concerns stemming from the Chiquita Canyon Landfill, a major 639-acre waste facility in Castaic, California. "We believe the de-rating more than compensates investors for the remaining uncertainty at Chiquita," he says, and notes that "as remediation" cash spending is expected to moderate after 2026. Shares are up 0.7% to C$218.51.
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