Wolfe Research Downgrades Waste Connections Inc. (WCN) to Peerperform, 'overheated landfill challenges'

Wolfe Research analyst Timna Tanners downgraded Waste Connections Inc. (NYSE: WCN) from Outperform to Peerperform.

The analyst comments "On its overheated landfill challenges, we downgrade to Peer Perform with a new fair value price range of $134-145/shr using 15-16X 2024E EV/EBITDA, down from a prior $146 PT using 16x. Investors may have overly shrugged off the potential hit from the elevated temperature landfill incident (ETLF) at Chiquita Canyon Landfill, which mgmt detailed in its Q3 results on Oct 26. Mgmt has said it may ringfence the total liability by year end, and we estimated $150-250M over three yrs, with a minimum $20M/qtr cost in 2024E, $10M/qtr in 2025E, and $5M/qtr in 2026E. We cut 2024E EBITDA to $2.7B from $2.72B (vs pre-Q3 $2.78B) and 2025E to $2.97B from $3B."

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 $134.34 yesterday.

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