Crispr Therapeutics shares tumble after significant earnings miss
On Thursday, BMO Capital Markets made an adjustment to the price target of Clean Harbors (NYSE:CLH), raising it from $260.00 to $264.00, while reiterating an Outperform rating on the stock. Currently trading at $213.94 with a market capitalization of $11.6 billion, the company shows promising potential according to InvestingPro analysis. The firm’s analyst, Devin Dodge, cited several factors supporting the positive outlook, including robust demand, pricing power, and diverse growth avenues.
Specifically, Dodge noted that demand for Clean Harbors’ services is holding strong and the company has successfully maintained pricing above cost inflation. The company’s robust financial performance is evident in its 8.52% revenue growth over the last twelve months and healthy EBITDA of $1.07 billion. This, coupled with various organic growth opportunities that the company is exploring, paints a promising picture for future profitability, especially within the oil re-refining segment, which is currently at or near its trough levels.
The analyst also highlighted the company’s solid balance sheet, which is seen as a positive sign for potential mergers and acquisitions, providing an upside risk to earning estimates. This assessment is supported by InvestingPro data showing a healthy current ratio of 2.37 and moderate debt levels. Dodge pointed out that any such activity could further bolster Clean Harbors’ financial position and market standing.
Looking ahead, Clean Harbors is expected to benefit from cleanup efforts related to per- and polyfluoroalkyl substances (PFAS), as well as from the expansion of industrial capacity in the United States. These longer-term prospects are key components of BMO Capital’s endorsement of an Outperform rating for the company’s stock. For deeper insights into Clean Harbors’ growth potential and comprehensive financial analysis, including additional ProTips and detailed metrics, investors can access the full research report on InvestingPro.
In other recent news, Clean Harbors Inc . reported its first-quarter 2025 earnings, revealing a mixed financial performance. The company achieved earnings per share (EPS) of $1.09, slightly exceeding the forecast of $1.07, but its revenue of $1.43 billion fell short of the anticipated $1.45 billion. Despite the revenue miss, Clean Harbors maintained a solid adjusted EBITDA of $235 million, with a 4% year-over-year increase in total company revenues driven by growth in environmental services. The company continues to hold a strong cash position, with nearly $600 million in cash and marketable securities.
Looking ahead, Clean Harbors projects an adjusted EBITDA for 2025 between $1.150 billion and $1.210 billion, indicating a 6% annual growth. The company also anticipates continued expansion in its environmental services, with expected EBITDA growth of 5-8%. In terms of analyst actions, Moody’s upgraded Clean Harbors’ credit rating based on its recent financial performance and strong capital policies. This upgrade reflects the company’s solid growth outlook and its ability to manage debt effectively.
Additionally, Clean Harbors is actively pursuing mergers and acquisitions, reviewing multiple deals to capture synergies and expand its network of assets. The company is focused on both internal and external opportunities to generate the best returns on shareholders’ capital. Clean Harbors’ strategic partnerships, such as its collaboration with BP (NYSE:BP) Castrol, are expected to support future growth and stability, particularly in its Safety Kleen Services segment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.