BMO Capital reiterates Clean Harbors stock rating on favorable outlook

Published 23/06/2025, 15:26
BMO Capital reiterates Clean Harbors stock rating on favorable outlook

Investing.com - BMO Capital reiterated its Outperform rating and $264.00 price target on Clean Harbors (NYSE:CLH) on Monday. The stock, currently trading at $227.61 with a market capitalization of $12.15 billion, has received a strong consensus from analysts with targets ranging from $212 to $300.

The research firm described Clean Harbors as its "preferred idea" with a compelling risk/reward profile that offers "an attractive mix of offense and defense for the current market environment." BMO made modest adjustments to its estimates based on revised depreciation and amortization assumptions. According to InvestingPro, the company maintains a healthy financial position with a "GOOD" overall score and strong liquidity, as evidenced by a current ratio of 2.37.

BMO Capital highlighted Clean Harbors' "compelling investment characteristics," specifically noting its leading market share, attractive assets, high barriers to entry, and favorable industry structure as key strengths supporting the rating.

The firm expressed confidence in Clean Harbors' ability to maintain "CPI+ pricing (or greater)" over the long term, which it believes will drive margin expansion, earnings growth, and free cash flow generation.

BMO analysts indicated that risks to their earnings forecast and valuation multiple for Clean Harbors are "weighted to the upside over the near to intermediate term," reinforcing their positive outlook on the waste management company.

In other recent news, Clean Harbors Inc . reported its first-quarter 2025 earnings, which revealed a mixed financial performance. The company achieved an earnings per share (EPS) of $1.09, slightly surpassing the forecast of $1.07, yet its revenue of $1.43 billion fell short of the expected $1.45 billion. BMO Capital Markets adjusted Clean Harbors' price target from $260.00 to $264.00, maintaining an Outperform rating, highlighting strong demand and pricing power. Truist Securities reiterated its Buy rating on Clean Harbors, citing confidence in the company's growth outlook and potential regulatory benefits in its PFAS business. During its 2025 Annual Meeting of Shareholders, Clean Harbors announced the election of five Class III directors and the ratification of Deloitte & Touche LLP as the independent auditor for the fiscal year. The company also emphasized its robust cash position, with nearly $600 million in cash and marketable securities, and a solid balance sheet supporting potential mergers and acquisitions. Clean Harbors has been actively exploring various organic growth opportunities, including PFAS cleanup efforts and industrial capacity expansion in the United States.

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