UPDATE: Goldman Sachs Starts Waste Connections Inc. (WCN) at Buy
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a 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
- UPDATE: Oppenheimer Starts Shopify (SHOP) at Perform
- UPDATE: Oppenheimer Starts Paylocity Holding (PCTY) at Perform
- FBR Capital Cuts Price Target on Express (EXPR) Following 3Q EPS Miss
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!