Goldman Sachs Downgrades Covanta (CVA) to Neutral

Goldman Sachs analyst Brian Lee downgraded Covanta (NYSE: CVA) from Buy to Neutral with a price target of $10.00 (from $17.00).

The analyst comments "Fundamentally, CVA is better positioned than in the 2008-2009 recession given about 75% of the business is tied to more stable Waste segment fundamentals (as opposed to Energy) and pricing conditions appear more stable as well. That said, we see a combination of high debt leverage (~6X), near-term volume headwinds, and a lack of significant growth catalysts until 2022-2023 creating a difficult setup for the stock to outperform in the current environment. Flowing through impacts from COVID-19, our revised 12-month target of $10 (vs. $17) implies about 20% upside from current levels, and we believe argues for a more tempered view on the stock."

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 $8.34 yesterday.

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