Jefferies starts coverage on Casella Waste with 'buy' rating

Casella Waste Systems

25/10/2022 12:24

** Jefferies starts coverage on solid waste services firm
Casella Waste Systems Inc  CWST.O  with "buy" rating 
    ** Brokerage notes that it can leverage pricing monopoly
since it controls ~20% of the market in seven northeastern U.S.
states; says mandated closure of landfills to increase supply of
rubbish over next 3-5 yrs which co can use to drive prices and
returns 
    ** Jefferies expects greater M&A potential since it is the
only company among rivals to not be acquired
    ** Waste management companies hold up well in recessionary
periods as collection/processing is an essential service -
Jefferies
    ** Jefferies sets PT at $95
    ** Three of seven brokerages rate the stock "strong buy",
four "hold"; their median PT is $93, as per Refinitiv
    ** Up to Monday's close, stock had fallen 9.7% compared with
a 27.8% decline in the Nasdaq industrial index  .IXID 
 (Reporting by Johann M Cherian in Bengaluru)
 ((johann.mcherian@thomsonreuters.com;))