Street Calls of the Week
Investing.com - Barclays initiated coverage on Clean Harbors (NYSE:CLH), currently trading at $237.14 with a market capitalization of $12.77 billion, with an Equalweight rating and a price target of $253.00 on Thursday. According to InvestingPro, the company maintains a GOOD financial health score with strong liquidity metrics.
The research firm cited potential risks of price competition as new industry incineration capacity comes online, which influenced its cautious approach. While Clean Harbors shares appear relatively inexpensive compared to solid waste peers, the stock currently trades at a P/E ratio of 33.44x with a current ratio of 2.45, indicating strong liquidity position.
Barclays expressed concern that PFAS cleanup and Shoring tailwinds might disappoint relative to investor expectations, leading to 2026/27 adjusted EBITDA estimates approximately 4% below Bloomberg consensus.
The $253 price target is based on a 12x multiple applied to cumulative 3Q26-2Q27E adjusted EBITDA, less net debt, according to the research note.
Barclays identified several risk factors, including lower oil prices, a potential industrial recession driving slower infrastructure spending, and increased price competition, while noting possible upside from Federal Reserve rate cuts, acceleration of PFAS cleanup spending, and announcements of large M&A or organic growth investments.
In other recent news, Clean Harbors reported its second-quarter earnings for 2025, slightly missing analyst forecasts. The company’s earnings per share (EPS) came in at $2.36, just below the expected $2.38, while revenue reached $1.55 billion, falling short of the anticipated $1.59 billion. Despite these misses, analysts have shown continued confidence in the company. Truist Securities reiterated its Buy rating on Clean Harbors, setting a price target of $250.00, highlighting optimism about hazardous waste pricing. Meanwhile, BMO Capital raised its price target for Clean Harbors to $268.00, maintaining an Outperform rating. BMO Capital noted the company’s commendable performance in the face of tariff-related uncertainty and sluggish industrial activity. These developments reflect ongoing analyst support for Clean Harbors amidst recent challenges.
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