Baird Cuts Price Target on Covanta Holding (CVA) Ahead of 3Q15 Results

Baird maintained an Outperform rating on Covanta (NYSE: CVA), and cut the price target to $22.00 (from $25.00), ahead of the company's 3Q15 earnings results. Baird estimates Q3 revenue of $404.2M, adjusted EBITDA of $122.8M, and non-GAAP EPS of $0.00 vs. consensus of $405.3M/$136.4M/$0.21, respectively.

Analyst Ben Kallo commented, "Our estimates are below consensus due to higher expected plant operating expenses, and we are lowering our Q4/2016 estimates to reflect the recent decline in scrap metals pricing. Although we continue to believe CVA offers an attractive lower risk dividend (~5.5%), which we anticipate will be increased, we think it will be difficult for the stock to appreciate until operational progress is shown at Durham-York, which is expected in the near term."

For an analyst ratings summary and ratings history on Covanta click here. For more ratings news on Covanta click here.

Shares of Covanta closed at $17.55 yesterday.

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