Clean Harbors gains as UBS upgrades to 'buy'

Clean Harbors

Yesterday 15:22

** Shares of environmental and industrial waste services co Clean Harbors CLH.N, CLH.N up 1.2% at $320.12 on Weds after UBS upgrades to 'buy' from 'neutral', citing earnings upside from capital deployment and improving fundamentals
** Brokerage increases PT by $50 to $375 vs Wall Street median of $364, per LSEG
** UBS says consensus sees leverage falling to 1.0x by 2030 despite management's target of above 2.0x, leaving room for acquisitions and/or share repurchases
** UBS says its FY27 EBITDA/sh estimate is 5% above consensus on higher expected gross margins, mainly from stronger forecasts for co's Safety-Kleen Sustainability Solutions business, and sees about 20% incremental EBITDA from balance sheet capacity
** CLH slated to report Q3 results on Oct 28; UBS says its estimates are broadly in line with the Street, though sustained higher oil prices could provide earnings upside
** Stock recently traded at 31 times expected earnings vs five-year avg forward PE of 25
** 14 of 18 brokerages rate the stock "strong buy" or "buy", 4 rate "hold"
** Shares up ~37% YTD, well outperforming 3% advance in S&P 400 Industrials sector .SPMDCI; stock is roughly 5% below its all-time intraday high of $335.94 reached on Jul 29, 2026

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))