Wedbush Raises Price Target on Waste Connections (WCN) to $85 Following Announced Groot Acquisition

Wedbush reiterated an Outperform rating on Waste Connections Inc. (NYSE: WCN), and raised the price target to $85.00 (from $80.00), following the company's announced acquisition of Groot. Groot is the largest privately owned solid waste services company in Illinois. Management indicated Groot’s estimated annual revenue of ~$200 million.

Analyst Al Kaschalk commented, "We continue to view Waste Connections’ (WCN) favorable market structure, as well as focus on secondary markets as significant barriers to entry driving high cash flow conversion on an incremental ton of municipal solid waste. We look for WCN to benefit from core price-volume growth discipline and further optimization of the Progressive Waste (Progressive) operations owned since June 1, 2016. With favorable west coast market structures, we are comfortable with low-mid-single digit top-line organic growth along with leading cash flow conversion as reasons for shares to remain a core holding in Mid Cap growth portfolios. Furthermore, we remain confident in capital allocation decisions and net debt/EBITDA leverage ratio below 3.0x."

For an analyst ratings summary and ratings history on Waste Connections Inc. click here. For more ratings news on Waste Connections Inc. click here.

Shares of Waste Connections Inc. closed at $78.83 yesterday.

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