Citi analyst Bryan Burgmeier maintained a Hold rating on Waste Connections yesterday and set a price target of $196.00.
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Bryan Burgmeier has given his Hold rating due to a combination of factors that reflect a balanced outlook for Waste Connections. The company’s recent quarterly performance showed resilience with a notable increase in share price following strong results, despite facing significant challenges from commodity price fluctuations. Looking ahead, Waste Connections is expected to achieve moderate revenue growth driven by price-led organic growth and benefits from recent mergers and acquisitions. However, the anticipated margin expansion is tempered by pressures from recycled commodities and merger-related costs.
Additionally, while the company’s free cash flow conversion is projected to improve, there are still uncertainties regarding capital expenditures and remediation costs, which will be clarified in the coming months. The firm’s EBITDA estimates for 2026 have been adjusted slightly downward due to assumptions about the limited contribution from high-margin renewable natural gas, although the core solid waste segment remains stable. Consequently, the target price has been slightly reduced, and the expected share price return is moderate, justifying the Hold rating.
Burgmeier covers the Industrials sector, focusing on stocks such as Waste Connections, GFL Environmental, and Republic Services. According to TipRanks, Burgmeier has an average return of 10.6% and a 58.62% success rate on recommended stocks.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $194.00 price target.