UPDATE: Goldman Sachs Starts Waste Connections Inc. (WCN) at Buy
- Noble Energy (NBL) to Acquire Clayton Williams Energy (CWEI) for $2.7B in Cash and Stock
- Nasdaq hits record; bank earnings validate Wall St. rally
- Intrawest Resorts (SNOW) Exploring a Possible Sale - Reuters
- Alibaba (BABA) Has No Plans to Acquire Rest of Groupon (GRPN) - Source
- Time (TIME) Said to Soon Begin Discussions with Interested Buyers - Bloomberg
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
(Updated - November 1, 2016 9:45 AM EDT)
Goldman Sachs initiated coverage on Waste Connections Inc. (NYSE: WCN) with a Buy rating and a price target of $90. Analyst Brian Maguire noted its differentiated strategy, superior margins and FCF generation.
"We favor WCN’s differentiated strategy that focuses on maintaining high waste collection margins by operating primarily in secondary (suburban and rural) and exclusive (franchise-based) markets. Through this strategy, WCN has been the most successful in our coverage in pricing with a 2.7% average annual yield since 2011 (twice the 1.4%/1.3% averages for WM/RSG) while still posting the fastest organic volume growth (five-year average growth of 1.0%). This model also generates the highest margins (33.6% EBITDA margin), returns (9.9% CROCI), and cash conversion (FCF is 50% of EBITDA and over 15% of sales)," said the analyst.
Shares of Waste Connections Inc. closed at $75.21 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Goldman Sachs Upgrades FirstEnergy Corp. (FE) to Neutral
- Wedbush Raises Price Target on Columbia Sportswear (COLM) to $72; Reiterates Outperform
- Berenberg Downgrades Novartis (NVS) to Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, New Coverage
Related EntitiesGoldman Sachs
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!