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Investing.com - Jefferies has lowered its price target on Casella Waste Systems (NASDAQ:CWST) to $115.11 from $118.00 while maintaining a Hold rating on the stock. The waste management company, currently valued at $6.53 billion, is trading near its 52-week low of $91.01.
The adjustment follows what Jefferies described as a "mixed quarter" for the waste management company, which exceeded revenue expectations but fell short on EBITDA and margin performance. InvestingPro data shows impressive revenue growth of 20.35% over the last twelve months, with EBITDA reaching $370.02 million.
According to Jefferies, Casella’s revenue outperformance was primarily driven by merger and acquisition activity, while margin expansion has been "lackluster" due to synergy realization taking longer than anticipated.
The firm noted that Casella’s increased guidance suggests improved volume in the second half of the year, continued execution on acquisitions, and normalized base business margin expansion.
Jefferies maintained its Hold rating on Casella Waste Systems, citing the stock’s "elevated" valuation as a key factor in its investment stance.
In other recent news, Casella Waste Systems reported its Q2 2025 earnings, which showed a notable discrepancy between earnings per share (EPS) and revenue performance. The company’s EPS was reported at $0.08, significantly below the forecasted $0.33, marking a surprise of -75.76%. Despite this, Casella Waste Systems managed to surpass revenue expectations, achieving $465.3 million compared to the projected $454.35 million. This mixed result has caught the attention of investors and analysts alike. The earnings report highlights the challenges faced by the company in meeting profitability targets, even as it continues to generate strong revenue. These recent developments are crucial for investors to consider as they evaluate the company’s performance.
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