Casella Waste initiated with an Outperform at Wolfe Research

Wolfe Research analyst Timna Tanners initiated coverage of Casella Waste with an Outperform rating and $96 price target as part of a broader research note on Environmental Services. The sector has clear historical outperformance during downturn and offers attractive barriers to entry and pricing power, with smaller players able to grow via M&A, the analyst tells investors in a research note, adding that the firm sees resilient pricing power and incremental upside from recycling, automation, and cost cutting. The company also has no stated plans to return cash to shareholders, preferring growth opportunities via M&A to other cash uses, Wolfe added, stating that while Casella’s Northeast geographic focus offers less population growth than other regions, it benefits from scarce landfill options and relative concentration.