Barclays Maintains an 'Equalweight' on Covanta (CVA); Solid Q3, Buybacks Continue
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Price: $20.26 --0%
Rating Summary:
9 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
9 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barclays maintains an 'Equalweight' on Covanta (NYSE: CVA) price target lowered $2 to $17.00.
Barclays analyst says, "CVA reported solid Q3 results and continued to return capital to shareholders: CVA reported Q3'11 EBITDA of $152M vs. $150M Q3'10 and EPS of $0.24, flat with a year ago. Guidance was tightened to $485-$505M from $480-$520M for EBITDA and the low end of EPS guidance was raised to $0.45-$0.55 from $0.40-$0.55...We are taking our '11-'13 EBITDA estimates to $503/$511/$529M from $518/$517/$537M and EPS to $0.54/$0.60/$0.71 from $0.55/$0.61/$0.72."
"While CVA continues to return capital, growth still looks challenging: While we are pleased with CVA's continued active buyback program, we still struggle to see meaningful growth in the medium term for the company's existing core business as contract escalations and other organic growth initiatives are unlikely to meaningfully move results net of headwinds from contract transitions, in our view."
For more ratings news on Covanta click here and for the rating history of Covanta click here.
Shares of Covanta closed at $14.49 yesterday.
Barclays analyst says, "CVA reported solid Q3 results and continued to return capital to shareholders: CVA reported Q3'11 EBITDA of $152M vs. $150M Q3'10 and EPS of $0.24, flat with a year ago. Guidance was tightened to $485-$505M from $480-$520M for EBITDA and the low end of EPS guidance was raised to $0.45-$0.55 from $0.40-$0.55...We are taking our '11-'13 EBITDA estimates to $503/$511/$529M from $518/$517/$537M and EPS to $0.54/$0.60/$0.71 from $0.55/$0.61/$0.72."
"While CVA continues to return capital, growth still looks challenging: While we are pleased with CVA's continued active buyback program, we still struggle to see meaningful growth in the medium term for the company's existing core business as contract escalations and other organic growth initiatives are unlikely to meaningfully move results net of headwinds from contract transitions, in our view."
For more ratings news on Covanta click here and for the rating history of Covanta click here.
Shares of Covanta closed at $14.49 yesterday.
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