Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
On Thursday, Stifel analysts adjusted their outlook for Clean Harbors (NYSE:CLH), reducing the stock’s price target to $285 from $290, while reaffirming a Buy rating. The revision follows the company’s fourth-quarter 2024 financial results, which surpassed both the consensus and Stifel’s own forecasts. The company, currently valued at $11.5 billion, trades at a P/E ratio of 27.7x and maintains a "GOOD" overall financial health score according to InvestingPro metrics. Despite the strong performance, with revenue growth of 8.89% in the last twelve months, the firm’s guidance for fiscal year 2025 was deemed cautious, primarily due to anticipated weaker first-quarter results in the Environmental Services (ES) segment and continued spread compression in the Safety-Kleen Sustainability Solutions (SKSS) division. InvestingPro analysis reveals 10+ additional exclusive insights about Clean Harbors’ performance and outlook, including detailed valuation metrics and growth indicators.
Stifel’s analysts highlighted several potential drivers for Clean Harbors’ future performance, suggesting that the company’s guidance may not fully account for these opportunities. Among these is the expectation of new large-scale emergency response (ER) project work. In fiscal year 2024, this type of project work contributed $15 million to the company’s revenues, but it has been conservatively forecasted at zero in the fiscal year 2025 guidance.
Additionally, Stifel anticipates further growth in per- and polyfluoroalkyl substances (PFAS) related sales, which could be stimulated by local, state, or federal initiatives. The analysts also pointed to the potential benefits of on-shoring and improvements in manufacturing and intellectual property. Such developments could lead to increased volumes for the ES network and support higher prices for base oil and lubricants in the SKSS segment.
Clean Harbors’ stock price currently stands at $213.37, trading with relatively low volatility and maintaining strong liquidity with a current ratio of 2.21. The firm’s analysts remain positive on the stock’s prospects, emphasizing multiple avenues for upside realization beyond the conservative fiscal year 2025 guidance provided by the company. For comprehensive analysis and detailed financial metrics, investors can access the full Clean Harbors research report on InvestingPro, which is part of their coverage of 1,400+ US stocks.
In other recent news, Clean Harbors reported its fourth-quarter 2024 earnings, exceeding expectations with an earnings per share (EPS) of $1.56, surpassing the forecast of $1.36. However, the company’s revenue slightly missed projections, coming in at $1.43 billion compared to the anticipated $1.44 billion. Despite the revenue shortfall, Clean Harbors achieved an 11% revenue growth for the full year 2024, with a 10% rise in consolidated EBITDA. Looking ahead, the company provided optimistic guidance for 2025, expecting adjusted EBITDA between $1.150 billion and $1.210 billion.
In other developments, TD Cowen adjusted its outlook on Clean Harbors, lowering the price target to $300 from $325 while maintaining a Buy rating, citing weaker-than-expected first-quarter guidance. Similarly, Oppenheimer reduced its price target to $254 from $256 but kept an Outperform rating, noting that Clean Harbors surpassed fourth-quarter 2024 adjusted EBITDA and free cash flow estimates. The analysts highlighted the company’s strong position for shareholder value creation through capital allocation and potential mergers and acquisitions.
These recent developments underscore the challenges and opportunities facing Clean Harbors, as analysts continue to weigh in on the company’s financial performance and strategic direction.
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